I will pay for the following essay ACC201:PRINCIPLES OF ACCOUNTING. The essay is to be 2 pages with three to five sources, with in-text citations and a reference page.In the year 2002, annual net inco

I will pay for the following essay ACC201:PRINCIPLES OF ACCOUNTING. The essay is to be 2 pages with three to five sources, with in-text citations and a reference page.

In the year 2002, annual net income of MIC increased remarkably by 66.67 percent due to an infrequent gain from the Lottery win – an extraordinary item. Since the gain of $62,000 from Lottery was an unexpected / extraordinary gain, it shouldn’t be accounted for in the expected income for next years. Stakeholders,

thus, can’t expect the income growth for the year 2002-2003 as high as 67 percent.

b) It can be seen in the Balance Sheet that MIC had liabilities of $200,000 in the year 2001, which became cleared in 2002 as depicted by null figure of liabilities in 2002. Thus, MIC utilized its net income of $200,000 in paying all of its liabilities.

c) Ignoring the extraordinary gain of $62,000 from the Lottery win, the expected growth for the year 2002-03 should be based on the growth in income from continuing operations. In 2002, growth in income from continuing operations is:

Now if we assume that MIC experiences the same percentage of growth from 2002 to 2003, we can expect the income from continuing operations as well as the net income – since extraordinary gain / loss is not expected year to year – to grow by the 15 percent. Based on this, the amount of income from continuing operations that the owners can expect for 2003 is: $138,000 (1.15) = $158,700

d) Since growth in Revenue and Operating expenses from 2001-2002 is also 15 percent, we can expect their same growth for the year 2002-03 too. In this way, we can expect all the main figures: revenue, operating expenses, and thus the income from continuing operation to grow by 15 percent in