Two accountants for the firm of Elwes and Wright are arguing about the merits of presenting an income statement in a multiple$-$stepNOVAK COMPANY

Income Statement

For the Year Ended December $31,2025$

$($In thousands, except eamings per share$)$

Sales Revenue

Cost of Goods Sold

Gross Profit

Operating Expenses

Selling Expenses

Dellvery Expense

$

Sales Commlssion

Depreclation Expense

Net Income $/($Loss$)$

Administratlve Expenses

Officers' Salarles

Depreclation Expense

Total Administrative Expenses

Income from Operations

Other Revenues and Gains

Rent Revenue

Other Expenses and Losses

Interest Expense

Income before Income Tax

$$

$

s

I

$.$

versus a single$-$step format. The discussion involves the following $2025$ information related to Novak Company $($$$000$ omitted$).$

Administrative expense