The major advantages and disadvantages of the multiple-step

Question

On February 28, 2014, the balances of the accounts appearing in the ledger of Foldaway Furnishings Company, a furniture wholesaler, are as follows:

Accumulated Depreciation-Building	$ 150,000	Notes Payable	400,000
Administrative Expenses	290,000	Office Supplies	20,000
Building	1,130,000	Retained Earnings	416,000
Capital Stock	175,000	Salaries Payable	6,000
Cash	97,000	Sales	2,850,000
Cost of Merchandise Sold	1,641,000	Sales Discounts	25,000
Dividends	50,000	Sales Returns and Allowances	90,000
Interest Expense	29,000	Selling Expenses	300,000
Merchandise Inventory	$ 260,000	Store Supplies	65,000

1. Prepare a multiple-step income statement for the year ended February 28, 2014.
2. Compare the major advantages and disadvantages of the multiple-step and single-step forms of income statements.