Chapter 5, Problem 5.7E

Preparing a Classified (Multiple-Step) Income Statement

LO5-3

Macy’s, Inc., operates the two best-know n high-end department store chains in North America: Macy’s and Bloomingdale’s. The following data (in millions) were taken from its recent annual report for the year ended February 1:

Cost of sales	$16,725
Federal, stale, and local income tax expense	804
Interest expense	390
Interest income	2
Net sales	27,931
Other operating expenses	88
Selling, general, and administrate expenses	8,440

Required:

Prepare a complete classified (multiple-step) consolidated statement of income for the company (showing gross margin, operating income, and income before income taxes).