The Gap Inc. is a specialty retailer that operates stores selling clothes under the trade names Gap, GapKids, BabyGap, and Banana Republic. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Gap annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Gap in the current year was \(\$ 1,506\) million and in the previous year was \(\$ 1,575\) million. Net sales for the current year were \(\$ 14,256\) million. Gross profit was \(\$ 5,447\) million; profit was \(\$ 967\) million. For your analysis, you determine that you need to know the amount of purchases and the cost of sales for the year.

Required:

Do you need to ask your boss for her copy of the annual report, or can you develop the information from her notes? Explain and show calculations.