Exercise 4-13A Multistep income statement LO 4-6 In Year 1, Kim Company sold land for $98,000 cash. The land had originally cost $48,000. Also, Kim sold inventory that had cost $187,000 for $283,000 cash. Operating expenses amounted to $40,000. Required a. Prepare a Year 1 multistep income statement for Kim Company. KIM COMPANY Income Statement For the year ended December 31, Year 1 Expenses Non-Operating Items $ b. Assume that normal operating activities grow evenly by 13% during Year 2. Prepare a Year 2 multistep income statement for Kim Company KIM COMPANY Income Statement For the year ended December 31, Year 2 Expenses Non-Operating Items $ 0 c. Determine the percentage change in net income between Year 1 and Year 2. (Round your answer to one decimal place.) Net income L by % d. Should the stockholders have expected the results determined in Requirement c? Yes