Attempts: Do No Harm: 52 3. Preparing a single-step and a multiple-step income statement Aa Aa Income statements can be presented using two formats: a single-step statement and a multiple-step statement. The single-step income statement emphasizes an organization's total revenues and total expenses and uses a single calculation to determine its bottom line (net income). In contrast, the multiple-step income statement groups various revenue and expense accounts and uses several calculations to provide the reader with important subtotals, including the company's gross profit, operating expenses, and earnings before taxes. As a knowledgeable business professional, you'll rarely be able to anticipate which type of income statement you may be required to analyze. For this reason, it is essential that you are familiar with both formats. For example, Foley Company's end-of-year income statement data is listed in the following table. However, its management team would prefer to see the data organized into both a multiple-step and a single-step income statement. Account Sales salaries expense Advertising expense Depreciation expense Interest revenue Miscellaneous selling expense Office salaries expense Account Balance $42,125 858,675 20,075 20,135 1,380,160 44,000 Balance $117,150Interest expense 36,190 24,010 30,105 14,475 104,845 Cost of goods sold Insurance expense Delivery expense Sales Income tax expense