Does a multi-step Income Statement include things such as: Cash, Accounts Receivable, Inventory, Owner Capital, Intrest Revenue, and Owner Withdrawl? If so which ones and where would they be found? Solution A multi step income statement segregate operating and non operating results. It also shows gross profit seperatly. In the given question Inventory and Interest revenue are the part of multi income statement. In multi step income statement first step is calculation of gross profit ie. Sales - Cost of goods sold Cost of goods sold = Opening inventory+Purrchase + Direct expense - closing stock In second step we deduct all opertaing expenses from gross profit to arrive at operating profit In third step we add and deduct all non operating income and non operating expense respectively to arrive at Net income. Here in this third we add interst revenue to arrive at net income All other items doesnot have any role in the prepration of multi purpose financial statement. Items like cash, receivable, capital etc will reflect only in statement of financial position.