Multiple Step. A MultiStep Income Statement is a statement that differentiates among the incomes expenditures profits and losses into two important subcategories that are known as .

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A multiplestep income statement calculates a company’s gross profit by subtracting its cost of goods sold or costs directly related to the company’s production of goods or services from the company’s sales revenue A multiplestep income statement displays a list of a company’s operating expenses below the company’s gross profit.

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Net sales is the combination of the following amounts which occurred during the period shown in the income statement’s heading Sales of goods products merchandise etc originally billed to customers Reductions for goods that were returned by customers Reductions for allowances granted to customers.

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