Multiple-Step Income Statement

On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows:

Accumulated DepreciationBuilding	$782,750		Merchandise Inventory	$947,450
Administrative Expenses	548,500		Notes Payable	247,450
Building	2,529,550		Office Supplies	19,100
Cash	166,600		Salaries Payable	8,000
Cost of Merchandise Sold	3,725,200		Sales	6,402,450
Interest Expense	9,900		Selling Expenses	749,200
Kathy Melman, Capital	1,545,850		Store Supplies	90,250
Kathy Melman, Drawing	176,400

a. Prepare a multiple-step income statement for the year ended March 31, 2019.

Racine Furnishings Company
Income Statement
For the Year Ended March 31, 2019
		$
Gross profit		$
Expenses:
	$
Total expenses
		$
Other expense:
		$

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