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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

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?

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