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

Cost of sales $17,010

Federal, state and local income tax expense 1,032

Interest expense 485

Interest income 5

Net sales 29,825

Other operating expense 183

Selling general and administrative expenses 8,630

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

Gross Margin = 12,815

Operating Income = 4,002

Net Income Before Tax 3,522

Explanation:

The question is to prepare a complete Consolidated Statement of Income for the company showing The Gross margin, the Operating Income and the Income before Income taxes

Macy's Consolidated Statement of Income For the Year Ended February 1st

Description Amount ($) Amount ($)

Net Sales 29,825

Less: Cost of Sales 17,010

Gross Margin 12,815

Subtract: Operating Expenses

Selling Admin Expense 8,630

Other Operating Expense 183 (8,813)

Operating Income 4,002

Add: Non Operating Income Interest 5

Less: Non Operating Expense-Interest 485

Net Income Before Tax 3,522

Less: Federal, State and Local Income Tax 1,032

Income after tax 2,490