E13-7 LO13-3 Preparing a Classified (Multiple-Step) Income Statement Macy's, Inc., operates the two best-known high-end department store chains in North America: Macy's and Bloomingdale's. The following data (in millions) were taken from its recent annual report for the year ended February 1: Cost of sales Federal, state, and local income tax expense Interest expense Interest income Net sales Other operating expenses Selling, general, and administrative expenses $16,725 804 390 2 27,931 88 8,440 Required: Prepare a complete classified (multiple-step) consolidated statement of income for the company (show- ing gross margin, operating income, and income before income taxes)