1. On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows:

   Accumulated DepreciationBuilding	$712,600		Merchandise Inventory	$932,550
   Administrative Expenses	526,600		Notes Payable	245,550
   Building	2,522,650		Office Supplies	19,050
   Cash	178,750		Salaries Payable	8,100
   Cost of Merchandise Sold	3,804,300		Sales	6,714,750
   Interest Expense	10,300		Selling Expenses	681,650
   Kathy Melman, Capital	1,502,450		Store Supplies	89,900
   Kathy Melman, Drawing	168,050

   a. Prepare a multiple-step income statement for the year ended March 31, 2019.

   Racine Furnishings Company
   Income Statement
   For the Year Ended March 31, 2019
   		$
   Gross profit		$
   Expenses:
   	$
   Total expenses
   		$
   Other expense:
   		$

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