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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Office Supplies Retained Earnings Salaries Payable Administrative Expenses Building Capital Stock Cash Cost of Merchandise Sold $ 250,000 1,025,000 200,000 $ 21,200 937,600 6,000 2,550,000 40,000 160,000 410,000 15,400 97,000 1,400,000 Sales Discounts Sales Returns and Allowances Selling Expenses Store Supplies Dividends Interest Expense Merchandise Inventory Notes Payable 50,000 15,000 260,000 59,000