obj|2 a. Net Income: $575,000 E4-9 Multiple-step income statement On July 31, 2012, the balances of the accounts appearing in the ledger of Vagabond Furnishings Company, a furniture wholesaler, are as follows: Administrative Expenses $ 250,000 Office Supplies $ 21,200 Building 1,234,000 Retained Earnings 937,600 Capital Stock 200,000 Salaries Payable 6,000 Cash 97.000 Sales 3,200,000 Cost of Merchandise Sold 1,700,000 Sales Discounts 60,000 Dividends 50.000 Sales Retums and Allowances 190,000 Interest Expense 15,000 Selling Expenses 410,000 Merchandise Inventory 360,000 Store Supplies 15.400 Notes Payable 59.000 a. Prepare a multiple step income statement for the year ended July 31, 2012 b. Compare the major advantages and disadvantages of the multiple step and single step forms of income statements