In the worksheet tabs below are comparative income statements and balance sheets for GameStop Corp. All amounts are in millions except for per share amounts.

Required: Use the information in the income statement and balance sheet to project Year 3's amounts. Prepare the income statement first, then the balance sheet.

NEED TO KNOW DATA OF YEAR 3

	Year 3 (projected)		Year 2				Year 1
			(In millions, except per share data)
Net sales	Sales growth 2.84%		$9,296.00				$9,039.50
Cost of sales			6,520.10				6,378.40
Gross profit	Gross profit percentage = 29.86%		2,775.90				2,661.10
Selling, general and administrative expenses	SG&A = 22% of sales		2,001.00				1,892.40
Depreciation and amortization	Depreciation = 10.5% of prior year PP&E (gross)		154.40				166.50
Goodwill impairments	None						10.20
Asset impairments	Same as previous year		2.20				18.50
Operating earnings (loss)			618.30				573.50
Interest income	Same as previous year		(0.70)				(0.90)
Interest expense	Int./prior year LT Liab = 9.386%		10.70				5.60
Earnings (loss) before income tax expense			608.30				568.80
Income tax expense	Inc. tax/pre-tax income = 35.38%		215.20				214.60
Net income (loss)			393.10				354.20
Net loss attributable to noncontrolling interests	None
Net income (loss) attributable to GameStop Corp.			$393.10				$354.20
	Year 3 (projected)		Year 2				Year 1
			(In millions, except par value per share)
ASSETS
Current assets:
Cash and cash equivalents	Plug figure		$610.10				$536.20
Receivables, net	AR Turnover (without using average AR) = 81.9 times		113.50				84.40
Merchandise inventories, net	Inv. Turnover (without average inv.) = 5.6954 times		1,144.80				1,198.90
Deferred income taxes current	Same as previous year		65.60				51.70
Prepaid expenses and other current assets	5% decrease from previous year		128.50				78.40
Total current assets			2,062.50				1,949.60
Property and equipment:
Land	Allocate new total based on previous year percentages		18.30				20.40
Buildings and leasehold improvements	Allocate new total based on previous year percentages		609.20				609.60
Fixtures and equipment	Allocate new total based on previous year percentages		888.20				841.80
Total property and equipment	PP&E (gross)/Sales = 17.51935%		1,515.70				1,471.80
Less accumulated depreciation	Beginning balance plus Yr. 3 depreciation expense		1,061.50				995.60
Net property and equipment			454.20				476.20
Goodwill	No change from last year		1,390.40				1,414.70
Other intangible assets, net	No change from last year		237.80				194.30
Other noncurrent assets	No change from last year		101.40				56.60
Total noncurrent assets	No change from last year		2,183.80				2,141.80
Total assets			$4,246.30				$4,091.40
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable	AP turnover (without using average AP) = 7.994		$815.60				$783.90
Accrued liabilities	No change from last year		803.60				861.70
Income taxes payable	Tax Payable/tax expense = 8.0%		15.40				78.00
Notes payable	1.5% of LT Debt line item in previous year		5.10				2.40
Total current liabilities			1,639.70				1,726.00
Deferred income taxes	No change from last year		95.90				37.40
Long-term debt	No change from last year		350.60				1.60
Other long-term liabilities	No change from last year		92.40				75.00
Total long-term liabilities			538.90				114.00
Total liabilities			2,178.60				1,840.00
Commitments and contingencies (Notes
11 and 12)
Stockholders equity:
Preferred stock authorized 5.0 shares;
no shares issued or outstanding
Class A common stock $.001 par value; authorized	No change from last year		0.10				0.10
300.0 shares; 107.7 and 115.3 shares issued,
107.7 and 115.3 shares outstanding, respectively
Additional paid-in-capital							172.90
Accumulated other comprehensive income	No change from last year		(25.40)				82.50
(loss)
Retained earnings	No dividends paid		2,093.00				1,995.90
Total stockholders' equity			2,067.70				2,251.40
Total liabilities and stockholders equity			$4,246.30				$4,091.40

Year 2 (In millions,except per share data) Year 3 (projected) Year 1 $9,296.00 6,520.10 2,775.90 2,001.00 154.40 S9,039.50 6,378.40 2,661.10 1,892.40 166.50 10.20 18.50 573.50 (0.90) 5.60 568.80 214.60 354.20 Sales growth 2.84% Net sales Cost of sales Gross profit Selling, general and administrative expenses Depreciation and amortization Goodwill impairments Asset impairments Operating earnings (loss) Interest income Interest expense Earnings (loss) before income tax expense Income tax expense Net income (loss) Net loss attributable to noncontrolling interests Gross pr t percentage-29.86% SG&A 22% of sales Depreciation = 10.5% of prior year PP&E (gross) None Same as previous year 220 618.30 (0.70) 10.70 608.30 215.20 393.10 Same as previous year Int/prior year LT Liab 9.386% Inc. tax/pre-tax income-35.38% None Net income (loss) attributable to GameStop Corp $393.10 $354.20