Some people like to play a game that constructs a sequence of chemical elements where each element in the sequence begins with the last letter of its predecessor. For example,….
What action by management probably caused this change?
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.
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?