On March 31, 2010, the balances of the accounts appearing in the ledger of El Dorado Furnishings Company, a furniture wholesaler, are as follows:

Administrative Expenses $ 250,000

Office Supplies $ 21,200

Building 1,025,000

Retained Earnings 937,600

Capital Stock 200,000

Salaries Payable 6,000

Cash 97,000

Sales 2,550,000

Cost of Merchandise Sold 1,400,000

Sales Discounts 40,000

Dividends 50,000

Sales Returns and Allowances 160,000

Interest Expense 15,000

Selling Expenses 410,000

Merchandise Inventory 260,000

Store Supplies 15,400

Notes Payable 59,000

a. Prepare a multiple-step income statement for the year ended March 31, 2010.

b. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.