There are many different ways to discuss the Multi-Step Income Statement ...

There are many different ways to discuss the Multi-Step Income Statement, especially in the context of when you are completing Annual Report. This is just one of the ways, and hopefully, it helps you understand some of the dynamics better. 

Sales
(-) Sales Discounts
(-) Sales Allowances
= Net Sales
(-) COGS
= Gross Profit 
OPEX
(-) Depreciation
(-) Supplies, Repairs, Advertising, Freight, Utilities
= Income from Continuing Operations
Other Gains and Losses
(-) Loss on Sale
(+) Gains
= Income from Continuing Operations Before Income Tax
(-) Income Taxes
= Income Before Discontinued Operations
(-) Discontinued Operations
(+) Income Tax Benefits
= Net Income
EPS

Some quick notes:

• COGS  = Cost Available for Sale (CGAS) - Ending Inventory
• Depreciation expense can often be found by taking the change in the accumulated depreciation account
• Dividends are a reduction from retained earnings, and therefore, not considered an expense. 
• Loss on sale can arise from cash proceeds being less than the book value
• Gains can result from the difference between cost of repairs vs. potential insurance proceeds
• Income taxes can be deduced via the income tax rate
• EPS is Net Income divided by the total number of shares. For instance, you can find the common stock and divide that by the par yield (just an example). 

​cc: Reporting