In 2016, Image Incorporated sold land for $82,000 cash. The land had originally cost $50,000. Also, Image sold inventory that had cost $176,000 for $265,000 cash. Operating expenses amounted to $41,000.
a. Prepare a 2016 multistep income statement for Image Incorporated.
b. Assume that normal operating activities grow evenly by 10% during 2017. Prepare a 2017 multistep income statement for Image Incorporated.
c. Determine the percentage change in net income between 2016 and 2017.
d. Should the stockholders have expected the results determined in Requirement c? Explain your answer.