The following selected accounts and their current balances appear in the ledger of Druid Hills Co. for the fiscal year ended May 31, 20Y8:

Cash	$245,100
Accounts Receivable	971,100
Merchandise Inventory	1,786,300
Office Supplies	15,200
Prepaid Insurance	3,400
Office Equipment	836,100
Accumulated Depreciation-Office Equipment	559,400
Store Equipment	3,598,200
Accumulated Depreciation-Store Equipment	1,827,700
Accounts Payable	362,600
Customer Refunds Payable	48,500
Salaries Payable	40,800
Note Payable*	288,000
Kristina Marble, Capital	3,415,600
Kristina Marble, Drawing	104,200
Sales	11,442,000
Cost of Merchandise Sold	7,846,400
Sales Salaries Expense	922,900
Advertising Expense	542,700
Depreciation Expense-Store Equipment	146,100
Miscellaneous Selling Expense	47,000
Office Salaries Expense	658,600
Rent Expense	98,800
Depreciation Expense-Office Equipment	47,000
Insurance Expense	49,500
Office Supplies Expense	18,500
Miscellaneous Administrative Expense	18,300
Interest Expense	29,200
*final payment due in 10 years

	Required:
1.	Prepare a multiple-step income statement.*
2.	Prepare a statement of owners equity.*
3.	Prepare a balance sheet, assuming that the current portion of the note payable is $46,000.*
4.	How multiple-step and single-step income statements differ.

*Be sure to read the instructions for each financial statement carefully.

1. Prepare a multiple-step income statement. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. A colon (.) will automatically appear if it is required. 2. Prepare a statement of owner's equity. Be sure to complete the statement heading. Refer to the lists of Labels and Amount Descriptions for the exact wording of text entries. Enter amounts that represent reduction as negative numbers using a minus sign. Multiple-Step Income Statement and Balance Sheet 3. Prepare a balance sheet, assuming that the current portion of the note payable is $46,000. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Order the Property, Plant \& Equipment accounts in the order shown on the Instructions page. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Enter all amounts as positive numbers