The following information was drawn from the records of Toner Sales Company:

Required
a. Prepare a multistep income statement for each year.
b. Prepare a common size income statement for each year.
c. At a recent meeting of the stockholders, Toner€™s president stated 2018 would be a very good year with net income rising significantly. Write a brief memo explaining whether you agree or disagree with the president. Assume that the operating trends between 2016 and 2017 continue through 2018.

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2016 2017 Net sales Cost of goods sold Operating expenses Loss on the sale of land $200,000 $200,000 (90,000 (80,000) (60,000) (50,000) 0(24,000)