On February 28, 2014, the balances of the accounts appearing in the ledger of Foldaway Furnishings Company, a furniture wholesaler, are as follows:

a. Prepare a multiple-step income statement for the year ended February 28, 2014.
b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of incomestatements.

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Accumulated Depreciation-Building Administrative Expenses Building Capital Stock Cash Cost of Merchandise Sold Dividends Interest Expense Merchandise Inventory 150,000 Notes Payable 400,000 20,000 416,000 6,000 2,850,000 25,000 90,000 300,000 65,000 290,000 Office Supplies 1,130,000 Retained Earnings 175,000 Salaries Payable 97,000 Sales 1,641,000 Sales Discounts 50,000 29,000 Sales Returns and Allowances Selling Expenses 260,000 Store Supplies