3-5, 3-7, 3-8 only

3-5. 346. 3-7, Describe the two formats used for income statements. Explain why actual income statements are of ten a combination of these two formats. Explain how gross profit is computed for a retail business. Explain how cost of goods sold is reported on a single-step income statement and on a multiple-step income statement List the four major income subtotals, or captions, in their order of appearance, on a typical multiple- step income statement, 3-8