On October 31, 2016, the balances of the accounts appearing in the ledger of Prestige Furnishings Company, a furniture wholesaler, are as follows:

Accumulated Depreciation-Building $ 750,000

Administrative Expenses 540,000

Building 2,500,000

Cash 175,000

Common Stock 300,000

Cost of Merch Sold 3,800,000

Dividends 175,000

Interest Expense 10,000

Merchandise Inventory 980,000

Notes Payable 250,000

Office Supplies 20,000

Retained Earnings 1,287,000

Salaries Payable 8,000

Sales 6,410,000

Selling Expenses 715,000

Store supplies 90,000

Assume $50,000 of the Notes Payable is due in the next 12 months.

Prepare a multi-step Income Statement, a Statement of Retained Earnings, and a Classified Balance Sheet.