Wolverine World Wide Inc. prides itself as being the worlds leading marketer of U.S. branded non-athletic footwear. The following data (in millions) were taken from its annual report for its 2012 fiscal year:

Net Sales $1,640

Income Tax Expense 10

Dividends 20

Salaries and Wages Expense 520

Cost of Products Sold 1,010

Interest Expense 20

Required:

1.Based on these data, prepare a multistep income statement.

2.How much was the gross profit? What was the gross profit percentage? (Round to the nearest tenth of a percent.) Explain what these two amounts mean.

3.Did the gross profit percentage in the current year improve, or decline, relative to the 39.4% gross profit percentage in the prior year?