On October 31, 2016, the balances of the accounts appearing in the ledger of Prestige Furnishings Company, a furniture wholesaler, are as follows:

a. Prepare a multiple-step income statement for the year ended October 31, 2016.
b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.

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Accumulated Depreciation-Building Administrative Exenses Building Cash Common Stock Cost of Merchandise Sold Dividends Interest Expense 750,000 540,000 Notes Payable 2,500,000 Office Supplies 175,000 Retained Earnings 300,000 Salaries Payable 3,800,000 Sales 175,000 Seling Expenses Merchandise Inventory $980,000 250,000 20,000 1,287,000 6,410,000 715,000 90,000 10,000 Store Supplies