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On March 31, 2014, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furnituro wholesaler, are as follows: Accumulated Depreciation

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On March 31, 2014, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furnituro wholesaler, are as follows: Accumulated Depreciation Building Administrative Expenses Building Cash $783,500 524,850 2,563,700 175,050 3,796,900 10,000 1,543,800 177.250 994,000 Cost of Merchandise Sold Interest Expense Kathy Melman, Capital Kathy Melman, Drawing Merchandise Inventory Notes Payable Office Supplies Salaries Payable Sales Selling Expenses Store Supplies 243,350 19,950 8,150 6,398,650 712,400 90,850 Required: a. Prepare a multiple-step income statement for the year ended March 31, 2014. Be sure to complete the statement houding. Refer to the account Prepare a multiple-step income statement for the year ended March 31, 2014. Be sure to complete the statomort heading. Refer to me account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Not loss should be negative. Expenses should be positive. A colon () will automatically appear if it is required. 2. What is a major advantage of the multiple-step income statement over the single-step income statement? Danns Furnishings Company Income Statement (Label) 1 2 3 4 (Label) 5 6 7 8 9 (Label ) 10 11 Final Question b. What is a major advantage of the multiple-step income statement over the single-step income statement? The multiple-step income statement shows the relationship of gross profit to sales. The multiple-step income statement clearly presents the value of total revenues. The multiple-step income statement is less complex to prepare. The multiple-step income statement clearly presents the value of total expenses

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