1. Multiple-Step Income Statement

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

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

   a. Prepare a multiple-step income statement for the year ended March 31, 2018.

   Royal Furnishings Company
   Income Statement
   For the Year Ended March 31, 2018
   		$
   Gross profit		$
   Expenses:
   	$
   Total expenses
   		$
   Other revenue and expense:
   		$

   b. What is a major advantage of the multiple-step income statement over the single-step income statement?