On March 31, 2010, the balances of the accounts appearing in the ledger of El Dorado Furnishings Company, a furniture wholesaler, are as follows:

a. Prepare a multiple-step income statement for the year ended March 31, 2010.b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of incomestatements.

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Administrative Expenses Ricardo Cepeda, Capital Ricardo Cepeda, Drawing Salaries Payable $1,137,600 1,025,000 Building 6,000 2,550,000 40,000 160,000 410,000 15,400 Cash Cost of Merchandise Sold 1,400,000 Interest Expense Merchandise Inventory Notes Payable Sales Discounts Sales Returns and Allowances Selling Expenses Store Supplies 260,000 21,200 Office Supplies