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	$714,450		Merchandise Inventory	$935,200
Administrative Expenses	532,600		Notes Payable	239,550
Building	2,413,150		Office Supplies	20,750
Cash	172,850		Salaries Payable	7,650
Cost of Merchandise Sold	3,877,100		Sales	6,212,000
Interest Expense	10,050		Selling Expenses	700,650
Kathy Melman, Capital	1,632,800		Store Supplies	85,900
Kathy Melman, Drawing	167,950

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
Sales		$
Cost of merchandise sold
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?