Single Step Income Statement

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The Single-Step Income Statement

There are several formats in which you can construct an income statement. The simplest format is the single-step income statement, where you present a single subtotal for all revenue line items, and a single subtotal for all expense line items, with a net gain or loss appearing at the bottom of the report. Here is a sample format for a single-step income statement:

Revenues	$1,000,000
Total revenue	$1,000,000

Expenses
Cost of goods sold	350,000
Advertising	30,000
Depreciation	20,000
Rent	40,000
Payroll taxes	28,000
Salaries and wages	400,000
Supplies	32,000
Travel and entertainment	50,000
Total Expenses	$950,000

Net Income	$50,000

The single-step format is not heavily used, because it forces readers of an income statement to separately summarize information for subsets of information within the income statement. For a more readable format, try the multi-step format.