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Multiple$-$Step Income Statement

On March $31,20$Y$4,$ the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furniture wholesaler, are as follows:

Accumulated Depreciation$$Building $$419,000$ Merchandise Inventory $$547,000$

Administrative Expenses $302,000$ Notes Payable $140,000$

Building $1,397,000$ Office Supplies $11,000$

Cash $98,000$ Salaries Payable $4,000$

Cost of Merchandise Sold $2,123,000$ Sales $3,582,000$

Interest Expense $6,000$ Selling Expenses $400,000$

Kathy Melman, Capital $887,000$ Store Supplies $50,000$

Kathy Melman, Drawing $98,000$a$.$ Prepare a multiple$-$step income statement for the year ended March $31,20$ Y$4.$

Danns Furnishings Company

Income Statement

For the Year Ended March $31,20$ Y$4$

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?