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Labels and amount descriptions

Labels
Expenses
For the Year Ended March 31, 20Y4
March 31, 20Y4
Other expense
Revenues
Amount Descriptions
Gross profit
Income from operations
Net income
Net loss
Total expenses
Total assets
Total liabilities
Total owners equity

On March 31, 20Y4, the balances of the accounts appearing in the ledger of Danns Furnishings Company, a furniture wholesaler, are as follows:

Accumulated Depreciation-Building	$419,000
Administrative Expenses	302,000
Building	1,397,000
Cash	98,000
Cost of Merchandise Sold	2,123,000
Interest Expense	6,000
Kathy Melman, Capital	887,000
Kathy Melman, Drawing	98,000
Merchandise Inventory	547,000
Notes Payable	140,000
Office Supplies	11,000
Salaries Payable	4,000
Sales	3,582,000
Selling Expenses	400,000
Store Supplies	50,000

	Required:
a.	Prepare a multiple-step income statement for the year ended March 31, 20Y4. 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.
b.	What is a major advantage of the multiple-step income statement over the single-step income statement?

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