Oak Nursery Company€™s single-step income statements for 2011 and 2010 follow.

Required

1. From the information provided, prepare multistep income statements for 2010 and 2011 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 changeoccurred.

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Oak Nursery Company Income Statements For the Years Ended Aprll 30, 2011 and 2010 2011 2010 Revenues Net sales Interest income Total revenues $525,932 1,800 527,732 $475,264 850 476,114 Costs and expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense $234,948 161,692 62,866 3,600 $463,106 64,626 $171,850 150,700 42,086 1,700 366,336 Total costs and expenses Net income 109,778