Answer:
In the Multistep income it's possible to segregate the operative expenses and revenues of the non operative, it also shows the gross profit, which is
the Net Sales Revenues less the Cost of Goods Sold.
First it's shown the Gross Profit, then substracted the operating expenses
to arrive at operating income.
Finally with the non operating movements we have the net Income After Taxes and with the taxes expenses we have the Net Income of the company.
By the way in the Single Step Income doesn't exist a segregation in the expenses, it doesn't break the expenses into cateogories, so all the expenses are listed together.
It means the financial statement doesn't give much information to the external users about the company operations.
Explanation:
2020 Multi Step - Income Statement
$ 96.500,000 Sales
$ 96.500,000 Net Sales Revenues
-$ 6.480,000 Depreciation of sales equipment
-$ 60.570,000 Cost of goods sold
-$ 67.050,000 Cost of goods sold
$ 29.450,000 Gross PROFIT
-$ 7.980,000 Sales commissions
-$ 4.900,000 Administrative expense Officers’ salaries
-$ 3.960,000 Depreciation of office furniture and equipment
-$ 2.690,000 Selling expense Delivery expense
-$ 19.530,000 Operating Expenses
$ 9.920,000 INCOME FROM OPERATIONS
$ 17.230,000 Rent Revenue
$ 17.230,000 Other Revenues and Gains:
-$ 1.860,000 Interest Expenses
-$ 1.860,000 Other expenses and Loss
$ 25.290,000 NET INCOME AFTER TAXES
-$ 9.070,000 Income Tax Expenses
$ 16.220,000 Net INCOME
2020 Single Step - Income Statement
$ 96.500,000 Sales
$ 17.230,000 Rent Revenue
$ 113.730,000 TOTAL REVENUES
-$ 60.570,000 Cost of goods sold
-$ 10.440,000 Depreciation Expense
-$ 12.880,000 Wage Expenses
-$ 2.690,000 Supplies Expenses
-$ 1.860,000 Interest Expenses
-$ 88.440,000 TOTAL EXPENSES
-$ 9.070,000 Income Tax Expenses
$ 16.220,000 Net INCOME
