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There are two main formats for preparing an income statement: single-step and multi-step. Both willyield the same amount for the net income/loss if prepared correctly. There are clear differences between the two, and smaller companies may choose to use the single-step income statement due to fewer transactions in a period. The first format, the single-step income statement, is the basic format of preparing this statement. This format involves grouping all revenues together and deducting all expenses without calculating subtotals. Taking the example from the book on page 298, a single-step income statement would look like:Smart Touch LearningIncome Statement(Single-Step)Year Ended December 31, 2015Revenues:Net Sales Revenue$280,700Expenses:Cost of Goods Sold$199,500Salaries Expense15,000Rent Expense13,000Utilities Expense11,300Insurance Expense6,500Depr. Expense-Furniture1,800Depr. Expense-Building1,500Advertising Expense2,400Interest Expense2,300Delivery Expense1,600Supplies Expense600255,500Net Income/Loss$25,200