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Assignment ID: FG133137037
Question – In Year 1, Kim Company sold land for $113,000 cash. The land had originally cost $42,000. Also, Kim sold inventory that had cost $195,000 for $289,000 cash. Operating expenses amounted to $45,000.
1. Prepare a Year 1 multistep income statement for Kim Company.
2. Assume that normal operating activities grow evenly by 17 percent during Year 2. Prepare a Year 2 multistep income statement for Kim Company.
3. Determine the percentage change in net income between Year 1 and Year 2.
4. Should the stockholders have expected the results determined in Requirement c?