Question 01 Followings are the accounts appeared in the adjusted trial balance for the November 30, 2017 of Style Clothing. year ended Accounts name Amount Accounts name Amount Accounts payable Accounts receivable 25200 Notes payable 37000 30500 Owner's capital 101700 Accumulated dep - equipment Cash 45000 Drawings 10000 26000 Prepaid insurance 3500 Freight out Cost of goods sold Equipment Depreciation expense Insurance expense Interest expense 518000 Property tax expense 6500 Tax payable 3500 2500 146000 Rent expense 15000 11000 Salaries expense 96000 7000 Sales revenue 720000 Interest revenue Inventory Utilities expense 6400 Sales commission expense 2000 Commission payable 11000 4500 32000 Sales return and allowance 8500 8000 a) Prepare a multi-step income statement for the year ended November 30, 2017. (8) b) Prepare a classified balance sheet as at November 30, 2017. You are required to show equity statement separately. Notes payable are in due in 2020. (12) c) What kind of cost flow method Style Clothing uses in accounting system? Describe in brief the potential advantages that the company enjoys using that method. (4)