The following selected accounts and their current balances appear in the ledger of Prescott Inc. for the fiscal year ended September 30, 2048: $ 167,000 300,000 735,000 25,000 30,000 24,000 230,400 $ 507,600 250,000 7,134,000 4,350,000 777,600 91,800 Cash Accounts Receivable Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Office Equipment Accumulated Depreciation- Office Equipment Store Equipment Accumulated Depreciation- Store Equipment Accounts Payable Customer Refunds Payable Salaries Payable Note Payable (final payment due in five years) Common Stock 99,000 1,023,000 Retained Earnings Dividends Sales Cost of Goods Sold Sales Salaries Expense Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense- Office Equipment Office Supplies Expense Miscellaneous Administrative Expense Interest Expense 16,600 4,000 154,800 79,800 45,900 373,400 67,000 30,200 19,200 32,400 3,300 108,000 30,000 3,800 24,000 Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of stockholders' equity. No common stock was issued during the year. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $16,000. 4. Briefly explain how multiple-step and single-step income statements differ