Answer:
let's prepare a multi-step income statement and a balance sheet based on the provided information.
**Income Statement:**
1. Net Sales: $7,003.7 million
2. Cost of Goods Sold: $1,778 million
3. Gross Profit: Net Sales - Cost of Goods Sold = $5,225.7 million
4. Selling and Administrative Expense: $2,566.3 million
5. Income before Nonrecurring Charges and Other Items: Gross Profit - Selling and Administrative Expense = $2,659.4 million
6. Nonrecurring Charges: $421.8 million
7. Operating Income: Income before Nonrecurring Charges and Other Items - Nonrecurring Charges = $2,237.6 million
8. Other Income (Expense), Net: $21.1 million
9. Income before Interest and Taxes: Operating Income + Other Income (Expense), Net = $2,258.7 million
10. Interest Expense: $305.7 million
11. Income before Taxes: Income before Interest and Taxes - Interest Expense = $1,953 million
12. Income Taxes (Expense): $328.5 million
13. Net Income: Income before Taxes - Income Taxes (Expense) = $1,624.5 million
**Balance Sheet:**
**Assets:**
- Cash and Cash Equivalents: $105.2 million
- Accounts Receivable: $3,708 million
- Inventories: $62.6 million
- Other Current Assets: $240.1 million
- Total Current Assets: Sum of the above
- Property, Net: $2,784.8 million
- Other Assets (Long-Term Assets): $201 million
- Total Assets: Sum of Current Assets, Property, and Other Assets
**Liabilities:**
- Accounts Payable: $3,708 million
- Accrued Liabilities (Current Liability): $590 million
- Current Maturities of Long-Term Debt: ($193.9) million (considered as a reduction)
- Notes Payable (Current Liability): $188 million
- Other Liabilities (Long-Term Liabilities): $840.5 million
- Total Current Liabilities: Sum of the above
- Long-Term Debt: $376.7 million
- Total Liabilities: Sum of Current Liabilities and Long-Term Debt
**Equity:**
- Common Stock: $221 million
- Capital in Excess of Par Value: $7,067 million
- Retained Earnings, Beginning of Year: $3,801.2 million
- Dividends Paid: ($1.9) million (considered as a reduction)
- Treasury Stock: ($2,361.2) million (considered as a reduction)
- Currency Translation Adjustment: ($317.7) million (considered as a reduction)
- Other Income (Expense), Net: $21.1 million (considered as an addition)
- Total Equity: Sum of the above
This provides a snapshot of the financial position and performance based on the information given.
