Exercise #2 [11 ts} 1. Read case "Nordstrom unveils plan for revamping (Case 3.2 in the reading named income statement, p.991." Look at the page numbers in the middle on the side. Assume that Nordstrom achieved the goals laid out by the president. Create an income statement for Nordstrom from the information given in the case. '30 29% overhead and expenses given in the case should be broken down as 11% procurement costs and 18% overhead/expenses for the income statement. $5.5 billion ($5,500,000.000) Net Sales 35% Gross margin 11% Procurement costs 18% Overhead/expenses Using the formulas, complete the income statement. (3pts) Nordstrom 2000 S 96 Gross Sales Customer Returns 81. Allowances Net Sales Cost of Goods Sold Gross Margin Procurement Costs Adjusted Gross Margin Overhead] Expenses Operating Profit Other Income] Expense Net Prot Before Taxes 2. In 2003 Nordstrom had net sales of $5.975 billion ($5,975,000,000), gross margin of $2.1 billion, operating profit of $189,736,000, and procurement costs remained at 11%. Create an income statement for 2003. (Always set up the frame work for the income statement first) (Spts) Did the rm achieve its goals for percentages of overhead/expenses and gross margin set in 2000? (1pt) e Goal: 35% Gross margin, 18% Overheadlexpenses 3. Create two income statements for Nordstrom, one for 2000 [you can use the one you created for #1] and one for 2007, using the model in Exercise 1, #2 and3. [use 11.00% of the 26.9% overhead and expenses as procurement costs and the remainder as overhead and expense] {3pts}