On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows:

a. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9.

b. Compare the major advantages and disadvantages of the multiple and single-step forms of income statements.

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Accounts Receivable $ 170,000 $ 980,000 Inventory Notes Payable Office Supplies Retained Earnings Salaries Payable Sales Selling Expenses Store Supplies Accumulated Depreciation-Building Administrative Expenses 750,000 250,000 435,000 3,500,000 20,000 1,987,000 Building Cash Common Stock Cost of Goods Sold Dividends Interest Expense 80,000 8,000 300,000 8,245,000 5,500,000 575,000 175,000 90,000 15,000