A single$-$step income statement can be identified by which of the following formats?

It lists a figure for gross profit.

It shows subheadings for operating and non$-$operating items.

It shows cost of goods sold as a subtraction from net sales to determine the subtotal cost of goods sold.

It shows only one total for all expenses.

Explain how to determine gross profit on an income statement by selecting the correct statement below.

Cost of goods sold is added to net sales.

Cost of goods sold is added to sales discounts.

Cost of goods sold is subtracted from net sales.

Sales is subtracted from cost of goods sold.