In Year 1, Kim Company sold land for $98,000 cash. The land had originally cost $57,000. Also, Kim sold inventory that had cost $194,000 for $288,000 cash. Operating expenses amounted to $36,000. Required: a. Prepare a Year 1 multistep income statement for Kim Company. b. Assume that normal operating activities grow evenly by 11 percent during Year 2. Prepare a Year 2 multistep income statement for Kim Company. c. Determine the percentage change in net income between Year 1 and Year 2. Note: Round your answer to nearest whole percentage. d. Should the stockholders have expected the results determined in Requirement c ? Yes No