LO 4-6 Exercise 4-13A Multistep income statement In Year 1, Kim Company sold land for $80,000 cash. The land had originally cost $60,000. Also, Kim sold inventory that had cost $110,000 for $198,000 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 10 percent during Year 2. Prepare a Year 2 multistep income statement for Kim Company. Page 25 c. Determine the percentage change in net income between Year 1 and Year 2.

LO 4-6 Exercise 4-13A Multistep income statement In Year 1, Kim Company sold land for $80,000 cash. The land had originally cost $60,000. Also, Kim sold inventory that had cost $110,000 for $198,000 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 10 percent during Year 2. Prepare a Year 2 multistep income statement for Kim Company. Page 25 c. Determine the percentage change in net income between Year 1 and Year 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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