r supervisor has provided you with the following draft statement of income:

Smoking Hot Ltd.

Statement of Income

Year Ended October 31, 2020

Sales	$76,445,500
Gain on sale of building	975,000
	77,420,500
Expenses
Cost of goods sold	48,542,900
Depreciation	660,100
Interest	93,200
Other operating	313,700
Rent	1,800,000
Salaries and wages	8,452,900
	59,862,800
Income before income taxes	17,557,700
Income tax expense	5,267,000
Net income	$12,290,700

Your supervisor has asked you to INDICATE whether the statement of income was prepared in the single step or multiple step format AND BRIEFLY EXPLAIN how you made that determination (2 marks).