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	$174,650
Accumulated Depreciation-Building	740,950
Administrative Expenses	544,400
Building	2,512,350
Cash	186,000
Common Stock	308,900
Cost of Goods Sold	3,868,600
Dividends	184,350
Interest Expense	10,000
Inventory	970,850
Notes Payable	240,500
Office Supplies	19,300
Retained Earnings	1,252,400
Salaries Payable	8,100
Sales	6,219,100
Selling Expenses	704,600
Store Supplies	92,100

A.

Prepare a multiple-step income statement for the year ended March 31, 2018. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. In the Other income and expenses section only, enter amounts that represent other expenses as negative numbers using a minus sign.

B.

What is a major advantage of the multiple-step income statement over the single-step income statement?

Labels
For the Year Ended March 31, 2018
March 31, 2018
Operating expenses
Other revenue and expense
Amount Descriptions
Gross profit
Income from operations
Net income
Net loss
Total assets
Total liabilities
Total operating expenses
Total stockholders equity

B. What is a major advantage of the multiple-step income statement over the single-step income statement?

The multiple-step income statement is less complex to prepare.

The multiple-step income statement clearly presents the value of total revenues.

The multiple-step income statement shows the relationship of gross profit to sales.

The multiple-step income statement clearly presents the value of total expenses.