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

Required
a. Prepare a multistep income statement for each year.
b. Prepare a common size income statement for each year.
c. Assume that the operating trends between Year 1 and Year 2 continue through Year 3. Write a brief memo indicating whether you expect net income to increase or decrease in Year 3.

Transcribed Image Text:

Year 1 Year 2 Net sales Cost of goods sold Operating expenses Gain on the sale of land $60,000 (25,000) (13,200) $70,000 (26,500) (16,100) 5,000 -0-