On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows: Accounts Receivable 974,300 295,650 Accumulated Depreciation-Building Administrative Expenses Building Cash Common Stock Cost of Goods Sold Dividends Interest Expense $170,000 720,400 Inventory Notes Payable 557,600 Office Supplies 20,500 2,542,300 Retained Earnings 1,273,450 172,050 Salaries Payable 7,650 295,250 Sales 6,397,700 3,728,700 Selling Expenses 741,350 166,900 Store Supplies 93,450 10,250 a. Prepare a multiple-step income statement for the year ended March 31, 2018. Royal Furnishings Company Income Statement For the Year Ended March 31, 2018. Sales Cost of merchandise sold Gross profit Expenses: 6,397,700 3,728,700 2,669,000 a. Prepare a multiple-step income statement for the year ended March 31, 2018. Royal Furnishings Company Income Statement For the Year Ended March 31, 2018 Sales Cost of merchandise sold Gross profit Expenses: Selling expenses 741,350 Administrative expenses 557,600 Total expenses Income from operations Other expense: Interest expense Net income 6,397,700 3,728,700 2,669,000 1,298,950 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