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    The Single-Step Income Statement


    There are several formats in which an income statement can be constructed. 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. In particular, there is no gross margin calculation. For a more readable format, try the multi-step format.

    Related Topics

    Income statement overview
    Condensed income statement
    Multi step income statement
    What is a cash basis income statement?
    What is a comparative income statement?