Instructions On March 31, 20Y4, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furniture wholesaler, are as follows: Accumulated Depreciation-Building $758,050 Administrative Expenses 522,950 Building 2,558,950 Cash 182,150 Cost of Merchandise Sold 3,721,150 Interest Expense 10,150 Kathy Melman, Capital 1,611,550 Kathy Melman, Drawing 170,800 Merchandise Inventory 938,100 Notes Payable 255,400 Office Supplies 19,050 Salaries Payable 8,000 Sales 6,101,750 Selling Expenses 700,950 Store Supplies 92,800 Instructions Cost of Merchandise Sold 3,721,150 Interest Expense 10,150 Kathy Melman, Capital 1,611,550 Kathy Melman, Drawing 170,800 Merchandise Inventory 938,100 Notes Payable 255,400 Office Supplies 19,050 Salaries Payable 8,000 Sales 6,101,750 Selling Expenses 700,950 Store Supplies 92,800 Required: a. Prepare a multiple-step income statement for the year ended March 31, 20Y4. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (:) will automatically appear if it is required. b. What is a major advantage of the multiple-step income statement over the single-step income statement? Labels and Amount Descriptions Labels For the Year Ended March 31, 20Y4 March 31, 20Y4 Expenses Other expense Amount Descriptions Gross profit Income from operations Net income Net loss Total assets Total liabilities Total expenses Total owner's equity Danns Furnishings Company Income Statement (Label) 1 2 3 4 (Label) 5 6 7 00 8 9 (Label) 10 11 b. What is a major advantage of the multiple-step income statement over the single-step income statement? The multiple-step income statement is less complex to prepare. The multiple-step income statement shows the relationship of gross profit to sales. The multiple-step income statement clearly presents the value of total expenses. O The multiple-step income statement clearly presents the value of total revenues