Grizzly World Wide Inc. prides itself as being the world's leading marketer of Canadian branded non-athletic footwear. The following data (in millions) were taken from its annual report for the fiscal year ended January 3, 2014:

Required:
1. Based on these data, prepare a multi-step income statement.
2. How much was the gross profit? What was the gross profit percentage? Explain what these two amounts mean.
3. Evaluate the results in light of the company's 39.2 percent gross profit percentage in the prior year.
4. Compare Grizzly's gross profit percentage to Walmart's gross profit percentage. From this information, can you determine which company is more successful? Why or why not?

Transcribed Image Text:

Sales of Merchandise Income Tax Expense Cash Dividends Paid Selling and Administrative Expense Cost of Products Sold Interest Expense Other Revenues $1,220 45 21 345 735 3 3