Required:

a$-1.$ Compute the percentage of growth in net income from Year $1$ to Year $2$

a$-2.$ Can stockholders expect a similar increase between Year $2$ and Year $3?$

c$.$ Assuming that MIC experiences the same percentage of growth from Year $2$ to Year $3$ as it did from Year $1$ to Year $2,$ determine the amount of income from continuing operations that the owners can expect to see on the Year $3$ income statement.

d$.$ During Year $3,$ MIC experienced a $$64,000$ loss due to storm damage. Liabilities and common stock were unchanged from Year $2$ to Year $3.$ Use the information that you computed in Requirement c plus the additional information provided in the previous two sentences to prepare an income statement for the year ended December $31,$ Year $3,$ and balance sheet as of December $31,$ Year $3.$