Reference no: EM132650593

On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows:

Accounts Receivable                       $160,250

Accumulated Depreciation-Building   742,600

Administrative Expenses                 515,600

Building                                     2,552,350

Cash                                              183,850

Common Stock                                  295,050

Cost of Goods Sold                             3,903,350

Dividends                                          185,250

Interest Expense                                 10,200

Inventory                                      1,000,900

Notes Payable                                     254,900

Office Supplies                                      20,350

Retained Earnings                              1,315,950

Salaries Payable                                  8,050

Sales                                              6,618,600

Selling Expenses                                    706,050

Store Supplies                                        86,700

Question A. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Question B. What is a major advantage of the multiple-step income statement over the single-step income statement