Analyzing Financial Statements Using the Internet Go to www.gapinc.com to find Gap Inc.'s home page. Select Financials and Media and enter the site. Then, select Annual Reports, and click on the most recent annual report. Answer the following questions about Gap: 1. Read the Notes to Consolidated Financial Statements. What is the nature of Gap's operations? What type of property and equipment would you expect Gap to include in the property and equipment section of its balance sheet? 2. In which section of its financial statements does Gap provide information on the method of depre- ciation and amortization used? What other disclosures concerning depreciable assets are available in this same location?

3. Does Gap have any intangible assets? What type are they? What time period is used for cost allocation? 4. What does the amount listed on the balance sheet for property and equipment represent-cost, market, or some other amount? If Gap purchases no additional property and equipment assets, what will happen to the net book value over time? 5. How much depreciation and amortization expense did Gap report, as shown in its most recent annual report? Why is this amount not obvious from looking at the income statement? Which financial statement provides the depreciation and amortization amount?