Wolverine World Wide, Inc. prides itself as being the “world’s leading marketer of U. S. branded non-athletic footwear.” The following data (in millions) were taken from its annual report for its 2012 fiscal year:
Net Sales……………………….. $ 1,640
Income Tax Expense………………… 10
Dividends…………………………… 20
Salaries and Wages Expense………. 520
Cost of Goods Sold……………… 1,010
Interest Expense…………………….. 20
Required:
1. Based on these data, prepare a multistep income statement.
2. How much was the gross profit? What was the gross profit percentage? (Round to one decimal place.) Explain what these two amounts mean.
3. Did the gross profit percentage in the current year improve, or decline, relative to the 39.4% gross profit percentage in the prior year?