Elm Nursery Corporation's single-step income statements for 2011 and 2010 follow.

Elm Nursery Corporation had 20,000 shares of common stock outstanding during both 2011 and 2010.

REQUIRED
1. From the information provided, prepare multistep income statements for 2011 and 2010 showing percentages of net sales for each component.
2. Did income from operations increase or decrease from 2010 to 2011? Write a short explanation of why this change occurred.
3. What effect did other revenues and expenses have on the change in income before income taxes? What action by management probably caused this change?

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Elm Nursery Corporation Income Statements For the Years Ended April 30, 2011 and 2010 Revenues Net sales Interest income Total revenues $262,966 900 263,866 $237,632 425 238,057 Costs and expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Total costs and expenses $117,474 80,846 31,433 1,800 $231,553 32,313 8,000 S 24,313 S 1.22 85,925 75,350 21,043 850 $183,168 54,889 14,300 S 40,589 $ 2.03 Income before income taxes Income taxes Net income Earnings per share