Labels
For the Year Ended March 31, 2018
March 31, 2018
Operating expenses
Other revenue and expense
Amount Descriptions
Gross profit
Income from operations
Net income
Net loss
Total assets
Total liabilities
Total operating expenses
Total stockholders equity

On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows:

Accounts Receivable	$ 170,000
Accumulated Depreciation-Building	750,000
Administrative Expenses	435,000
Building	3,500,000
Cash	80,000
Common Stock	300,000
Cost of Goods Sold	5,500,000
Dividends	175,000
Interest Expense	15,000
Inventory	980,000
Notes Payable	250,000
Office Supplies	20,000
Retained Earnings	1,987,000
Salaries Payable	8,000
Sales	8,245,000
Selling Expenses	575,000
Store Supplies	90,000

A.

Prepare a multiple-step income statement for the year ended March 31, 2018. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.

B.

What is a major advantage of the multiple-step income statement over the single-step income statement? c B. What is a major advantage of the multiple-step income statement over the single-step income statement? The multiple-step income statement clearly presents the value of total revenues. The multiple-step income statement clearly presents the value of total expenses. The multiple-step income statement is less complex to prepare. The multiple-step income statement shows the relationship of gross profit to sales.