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The purpose of a classified multiple-step format income statement is:
a. To provide a detailed income statement for external reporting purposes, including the cost of goods sold and gross profit as well as other revenues and expenses
b. For external reporting purposes, organizing items by function and showing one total for all expenses
c. To provide additional detail regarding the merchandise inventory balances as well as sales discounts provided
d. To provide additional detail regarding the dollar value of sales discounts, sales returns and allowances, and selling expenses and general and administrative expenses for internal decision-making purposes
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