Selected financial statements from a recent annual report of The GAP Inc. follow. Use these statements to answer the following questions.

Required:

1. What amounts did The GAP report for the following items for the fiscal year ended January 31, 2009?

a. Total net revenues.

b. Total operating expenses.

c. Net income (earnings).

d. Total assets.

e. Total stockholders’ equity.

2. How many shares of common stock did the company have issued on January 31, 2009?

3. Why do you think The Gap reports more than one year of data in its financial statements?

Transcribed Image Text:

THE GAP, INC. Consolidated Balance Sheets February 2, January 31, 2009 ($ and shares in millions except par value) 2008 Assets Current assets: $ 1,715 $ 1,724 177 Cash and cash equivalents Short-term investments Restricted cash 41 38 Merchandise inventory Other current assets 1,506 1,575 743 572 Total current assets 4,005 2,933 4,086 3,267 Property and equipment, net Other long-term assets 626 485 $ 7,564 $ 7,838 Total assets Liabilities and Stockholders' Equity Current liabilities: Current maturities of long-term debt Accounts payable Accrued expenses and other current liabilities Income taxes payable $4 $4 1,006 1,259 50 138 975 1,076 57 30 Total current liabilities 2,158 2,433 Long-term liabilities: Long-term debt Lease incentives and other long-term liabilities 50 1,019 1,081 Total long-term liabilities 1,019 1,131 Commitments and contingencies (see Notes 11 and 15) Stockholders' equity: Common stock $0.05 par value Authorized 2,300 shares; Issued 1,105 and 1,100 shares; Outstanding 694 and 734 shares 55 55 Additional paid-in capital Retained earnings Accumulated other comprehensive earnings Treasury stock, at cost (411 and 366 shares) 2,895 9,947 2,783 9,223 123 125 (7,912) (8,633) Total stockholders' equity Total liabilities and stockholders' equity 4,387 4,274 $ 7,564 $ 7,838