(Solved): Preparing a Classified (Multiple-Step) Income Statement and Interpreting the Gross Profit Percentag ...

Preparing a Classified (Multiple-Step) Income Statement and Interpreting the Gross Profit Percentage (AP5-3) Nordstrom, Inc., is a leading fashion retailer that offers customers an extensive selection of high-quality fashion brands focused on apparel, shoes, cosmetics, and accessories for women, men, young adults, and children. The items reported on its income statement for an earlier year (ended February 1) are presented here (dollars in millions) in simplified form in alphabetical order: Cost of goods sold Interest expense Net revenue Other selling, general, and administrative expenses Income tax expense Weighted average shares outstanding Source: Nordstrom, Inc. $ 9,932 102 15,524 4,808 186 155 Required: Prepare a classified (multiple-step) consolidated income statement (showing gross profit, operating income, and income before income taxes). Include a presentation of earnings per share. What is the gross profit percentage? Explain its meaning.