Forms of the Income Statement
Ramos Nursery Corporation’s single-step income statements for 20×7 and 20×6 follow.
Ramos Nursery Corporation had 20,000 shares of common stock outstanding during both 20×7 and 20×6.
Required
1. From the information provided, prepare multistep income statements for 20×6 and 20×7 showing percentages of net sales for each component.
2. User Insight: Did income from operations increase or decrease from 20×6 to 20×7? Write a short explanation of why this change occurred.
3. User Insight: What effect did other revenues and expenses have on the change in income before income taxes? What action by management probably caused this change?
