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	$984,850
Accumulated DepreciationBuilding	764,100		Notes Payable	291,450
Administrative Expenses	563,500		Office Supplies	20,600
Building	2,413,200		Retained Earnings	1,314,000
Cash	181,550		Salaries Payable	8,050
Common Stock	296,550		Sales	6,506,850
Cost of Goods Sold	3,912,250		Selling Expenses	732,000
Dividends	167,050		Store Supplies	87,550
Interest Expense	9,600

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
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?