Ramos Nursery Company's single-step income statements for 20x8 and 20x7 follow.
Ramos Nursery Company
Income Statements
For the Years Ended April 30, 20x8 and 20x7

Required
1. From the information provided, prepare multistep income statements for 20x7 and 20x8 showing percentages of net sales for each component?
2. User Insight: Did income from operations increase or decrease from 20x7 to 20x8? Write a short explanation of why this change occurred?

Transcribed Image Text:

20x8 20x7 Revenues Net sales Interest income Total revenues $525,932 $475,264 700 $526,732 $475,964 800 Costs and expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Total costs and expenses $234,948 $171,850 150,700 42,086 850 $463,106 $365,486 $ 63,626 $110,478 161,692 62,866 3,600 Net income