(Solution) - Analyzing Gross Profit Percentage on the Basis of an Income -(2025 Original AI-Free Solution)

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Analyzing Gross Profit Percentage on the Basis of an Income Statement and Within-Industry Comparison
Wolverine World Wide Inc. prides itself as being the ?world?s leading marketer of U.S. branded nonathletic footwear.? It competes in many markets with Deckers, often offering products at a lower price point. Its brands include Wolverine, Bates, Sebago, and Hush Puppies. The following data were taken from its recent annual report (dollars in thousands):

Required:
1. Based on these data, prepare an income statement (showing both gross profit and income from operations). There were no extraordinary items.
2. How much was the gross profit margin? What was the gross profit percentage ratio? Explain what these two amounts mean. Compare the gross profit percentage with that of Deckers. What do you believe accounts for thedifference?