The income statements that follow are for Doug€™s Tools Corporation.

Required

1. From the information provided, prepare a multistep income statement for 2011 and 2012 showing percentages of net sales for each component

2. Did income from operations increase or decrease between 2011 and 2012? Write a short explanation of why this change occurred.

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Doug's Tools Corporation Income Statements For the Years Ended July 31, 2012 and 2011 2012 2011 Revenues Net sales Interest income Total revenues $464,200 1.420 $465,620 5388,466 750 5389,216 Costs and expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense 243,880 95,160 90,840 $198,788 55,644 49,286 1,100 5304,818 84,398 $435,480 $30 140 Total costs and expenses Net income