Chapter 1, Problem 1.7E

Preparing an Income Statement and Inferring Missing Values

Walgreen Co. is one of the nation's leading drugstore chains. Its recent income statement contained the following items (in millions). Prepare an income statement for the year ended August 31. current year. (Hint: First order the items as they would appear on the income statement and then confirm the values of the subtotals and totals. Exhibit 1.3 in the chapter provides a good model for completing this exercise.)

Cost of sales	$51,692
Provision for income taxes*	1,580
Interest expense	71
Net earnings	2,714
Net sales	72,184
Pretax income	4,294
Selling, general, and administration expense	16,561
Other income	434
Total expenses	68,324
Total revenues/income	72,618