a. Prepare a multiple-step income statement for the year ended February 28, 2014. b. What is a major advantage of the multiple-step income statement over the single-step income statement?

Multiple-Step Income Statement

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

Accumulated DepreciationBuilding	$150,000		Notes Payable	50,000
Administrative Expenses	212,200		Office Supplies	17,900
Building	871,100		Retained Earnings	817,000
Capital Stock	150,000		Salaries Payable	5,100
Cash	82,600		Sales	2,170,600
Cost of Merchandise Sold	1,189,800		Sales Discounts	34,200
Dividends	42,300		Sales Returns and Allowances	136,200
Interest Expense	12,800		Selling Expenses	348,300
Merchandise Inventory	$220,800		Store Supplies	13,300