Multiple-Step Income StatementOn March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows:

Accumulated DepreciationBuilding $748,900 Merchandise Inventory $987,550 Administrative Expenses 539,700 Notes Payable 253,200 Building 2,454,150 Office Supplies 19,600 Cash 175,350 Salaries Payable 8,150 Cost of Merchandise Sold 3,721,100 Sales 6,494,550 Interest Expense 9,700 Selling Expenses 699,200 Kathy Melman, Capital 1,551,150 Store Supplies 93,450 Kathy Melman, Drawing 167,750

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

Racine Furnishings CompanyIncome StatementFor 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?.