4-56 Retail Company Financial Statements Kmart Corporation is one of the world's largest retailers. The annual report for the year ended January 26, 2000 included the data shown below in millions). Unless otherwise specified, the balance sheet amounts are the balances as of January 26, 2000. $35,925 0 7,101 $ 280 1,759 344 6,523 Sales Cash dividends Merchandise inventories Cost of sales, buying, and occupancy Paid-in capital Other expenses Retained earnings Beginning of year End of year Accounts payable 28,102 2,036 280 Interest expense Long-term debt Cash Selling, general, and admi- nistrative expenses Accrued payroll and other current liabilities Other current assets Provision for income taxes Property and equipment, net Other noncurrent assets Other noncurrent liabilities Accrued taxes payable 3,878 4,281 2,204 1,574 715 337 6,410 534 2,952 298 1. Prepare a combined multiple-step statement of income and retained earnings. 2. Prepare a classified balance sheet. 3. The average stockholders' equity for the year was about $6,148 million. What was the percentage of net income (loss) on average stockholders' equity? 4. Compute (a) gross profit percentage and (b) percentage of net income to sales