A company presented its income statement using the following format:

Sales revenue ...................................... $x

Cost of goods sold ................................. x

Gross profit .......................................... x

Administrative expenses ........................... x

Selling expenses .................................... x

Profit from operations .............................. x

Other revenues and expenses ..................... x

Profit before income tax ........................... x

Income tax expense ................................ x

Profit ................................................ x

(a) Is this company using a single- or multiple-step form of income statement?

(b) Is it classifying its expenses by nature or by function? Explain.