The Single-Step Income Statement
The single-step income statement format uses 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. This format is most commonly used by businesses that have relatively simple operations.
Here is a sample format for a single-step income statement:
|Cost of goods sold||350,000|
|Salaries and wages||400,000|
|Travel and entertainment||50,000|
The single-step format is not heavily used, because it forces the readers of an income statement to separately summarize information for subsets of information within the income statement. For example, there is no gross margin calculation, nor any expense breakdowns by department. For a more readable format, try the multi-step format, which is the format of choice for multi-department organizations.