part b choices

Multiple-Step Income Statement On March 31, 2019, the balances of the accounts appearing in the ledger of Racine Furnishings Company, a furniture wholesaler, are as follows: Accumulated Depreciation-Building Merchandise Inventory $784,900 $935,250 Administrative Expenses 535,800 Notes Payable 261,450 Office Supplies 20,450 Building 2,597,300 Salaries Payable Cash 176,600 8,000 Cost of Merchandise Sold 3,697,750 Sales 6,681,650 Interest Expense Selling Expenses 9,600 686,450 Kathy Melman, Capital 1,585,150 Store Supplies 87,300 Kathy Melman, Drawing 167,750 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 Sales $1 Cost of merchandise sold 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? The multiple-step income statement clearly presents the value of total revenues. The multiple-step income statement is less complex to prepare. 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