1. The multi step income stamens is a useful format for merchandise because

- it does not show items such as interest revenue since this incidental revenue would not sustain the business

- it breaks revenues and expenses down into more detailed categories to provide information such as the profit on inventory alone and income that is likely to sustain the business

- it provides just 2 simple categories (revenues and expenses)

- it shows a higher net income than the single step income statement

2. Cost of goods sold is computed from the equation?

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