On December 31, 2015, the balances of the accounts appearing in the ledger of Arbutus Furnishings Company, a furniture wholesaler, are as follows:

a. Prepare a multiple-step income statement for the year ended December 31, 2015.
b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.

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Administrative Expenses Brean Breana Greva, Withdrawals Building Cash Cost of Goods Sold Interest Expense Inventory 59,000 21,200 6,000 2,250,000 40,000 160,000 350,000 15,400 $ 250,000 Notes Payable 1.137,600 Office Supplies a Greva, Capital 50,000 Salaries Payable 97,000 Sales Discounts 15,000 Selling Expenses 1,025,000 Sales 1,200,000 Sales Returns and Allowances 260,000 Store Supplies