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:

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	$	1,976
Income Tax Expense		48
Dividends		26
Salaries and Wages Expense		622
Cost of Goods Sold		1,232
Interest Expense		28
Required: 1. Prepare a multistep income statement. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Explanation: 2-a. Gross Profit = $1,976 − $1,232 = $744. 2-b. Gross Profit Percentage: $744 ÷ $1,976 × 100% = 37.7%. 3. Did the gross profit percentage in the current year improve or decline relative to the 37.9% gross profit percentage in the prior year? Decline Explanation: 3. The gross profit percentage declined slightly from 37.9% to 37.7%. This means that Wolverine World Wide is earning less gross profit per dollar of sales in fiscal 2012 than it did in the prior year.