Question: Elm Nursery Corporation s single step income statements for 2011 and 2010

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.

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 thischange?
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  • CreatedSeptember 10, 2014
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