On March 31, 20Y4, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows:

a. Prepare a multiple-step income statement for the year ended March 31, 20Y4.

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

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$ 419,000 $ 547,000 Merchandise Inventory Notes Payable Accumulated Depreciation-Building Administrative Expenses 302,000 140,000 Building Office Supplies 11,000 1,397,000 Cash 98,000 Salaries Payable 4,000 3,582,000 Cost of Merchandise Sold Interest Expense Kathy Melman, Capital Kathy Melman, Drawing 2,123,000 Sales 400,000 Selling Expenses Store Supplies 6,000 887,000 50,000 98,000