Multiple-Step Income Statement

On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows:

Accounts Receivable	$170,000		Inventory	$936,750
Accumulated DepreciationBuilding	749,450		Notes Payable	299,650
Administrative Expenses	549,550		Office Supplies	20,050
Building	2,602,050		Retained Earnings	1,324,950
Cash	167,750		Salaries Payable	8,200
Common Stock	292,600		Sales	6,094,650
Cost of Goods Sold	3,844,600		Selling Expenses	697,050
Dividends	174,050		Store Supplies	89,500
Interest Expense	9,850

a. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9.

Royal Furnishings Company
Income Statement
For the Year Ended March 31, 20Y9
		$fill in the blank c0693a080035006_2
		fill in the blank c0693a080035006_4
Gross profit		$fill in the blank c0693a080035006_5
Expenses:
	$fill in the blank c0693a080035006_7
	fill in the blank c0693a080035006_9
Total expenses		fill in the blank c0693a080035006_10
		$fill in the blank c0693a080035006_12
Other expense:
		fill in the blank c0693a080035006_14
		$fill in the blank c0693a080035006_16

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