multiple step income statement.

on Oct. 31, 2016 the balances of the accounts appearing in the ledger of Prestige Furnishings Co. a furniture wholesaler, are as follows:

accumulated Depreciation bldg. $750,000 Merchandise Inventory $980,000

administrative expenses $540,000 notes payable $250,000

building $2,500,000 office supplies $20,000

cash $175,000 salaries payable $8,000

cost of merchandise sold$3,800,000 sales$6,410,000

interest expense $10,000 selling expenses $715,000

Jan Brown, capital $1,587,000 store supplies $90,000

Jan Brown, Drawing $175,000

a)prepare a multiple step income statement for the year ended Oct 31, 2016.

b)compare the major advantages and disadvantages of the multiple step and single step forms of income statements.