Income statement format and EPS disclosures. Refer to the consolidated statements of earnings on page 711 of the Campbell Soup Company annual report in the appendix.

Required:
a. Does Campbell's use the single-step format or the multiple-step format? Which format do you prefer? Explain your answer.
b. Refer to the basic and diluted earnings per share data on page 711 and the related note disclosures on pages 726-727. Explain why this disclosure is appropriate.