Click on "Investors," followed by "Financials," and then "Annual Reports and Proxy." Download the latest annual report.

a. Which inventory cost flow assumption is used to measure the cost of inventory? Does Gap Inc. value inventory at the lower-of-cost-or-market value? If so, how is market value determined? Does this policy comply with GAAP?

b. For the three most recent years, list the amounts reported for Net Sales and Gross Profit. Is Net Sales increasing or decreasing? Is Gross Profit increasing or decreasing? Are these trends favorable or unfavorable? Explain your answer.

c. Using the financial statements, calculate the inventory turnover ratio for the three most recent years. Did the inventory turnover ratio increase or decrease? What does this measure? What does Gap Inc. do to identify inventory that is slow moving and how is this inventory treated?

d. For cost of goods sold, Gap Inc. uses Cost of Goods Sold and Occupancy Expenses. What is included in this amount?