In Year 1, 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.

Required
a. Prepare a Year 1 multistep income statement for Image Incorporated.
b. Assume that normal operating activities grow evenly by 10 percent during Year 2. Prepare a Year 2 multistep income statement for Image Incorporated.
c. Determine the percentage change in net income between Year 1 and Year 2.
d. Should the stockholders have expected the results determined in Requirement c? Explain your answer.