Answer:
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 <u> 1,032</u>
Income after tax 2,490
