On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows:

A. Prepare a multiple-step income statement for the year ended March 31, 2018. B. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.

Accounts Receivable Accumulated Depreciation Administive Expenses Building Cash Common Stock Cost of Goods Sold Dividends Interest Expense $170,000 nentory 980,000 250,000 20,000 1 ,987,000 8,000 8,245,000 575,000 90,000 Building 750,000 Notes Payable 435,000 Office Supplies 3,500,000 Retained Earnings 80,000 Ss Payable 00,000 Sales 5,500,000 Sling Expenses 175,000 Store Supplies 15,000