4. Inventory Turnover in Days 5. Gross Profit Rate Problem 2: Financial Statement Analysis: (45 points) Using The Gap's financial statements and the additional information given below, compute these ratios for the most current year shown - fiscal year 2019 - which ended on February 1, 2020. Show all computations. (round to 2 decimal places; (percent 15% or 15) Computations THE GAP, INC. CONSOLIDATED BALANCE SHEETS February 2020 Fabruary 2 1,364 $ 2,156 706 4,516 3.122 5,402 1,081 288 2.131 751 4.251 2,912 896 8,049 13,679 1,120 1024 and share in millions except par value) ASSETS Current assets Cash and cash equivalente Short-term investments Merchandise inventory Other current assets Total current assets Property and equipment, net of accumulated depreciation of $5,830 and $8,755 Operating lose assets Other long-term assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other current abilities Current portion of operating lease abilities Income taxes payable Total current liabilities Long-term liabilitet Long-term debet Long term operating lessefablies Lease Incentives and other long-term liabiti Total long-term labis Commitments and contingencies (en Note 16) Stockholders' equity Common stock 50.05 par value Authorized 2.200 shares for all periodo presented sued and Outstanding 371 and 378 shares Additions paid in capital Retindeamings Accumulated other comprehensive Income Total stockholders equly Tatables and stockholders equity 1,1745 1,067 920 48 3.209 2,174 1.249 1,249 5,508 397 1,073 2,322 99 3,257 40 3.316 13.679 3,451 53 3.553 8.049 See Accompanying Notes to consolidated Financial Statements Last Visited Nov 20, 2020 5:05 PM THE GAP, INC. CONSOLIDATED STATEMENTS OF INCOME 2019 2017 $ 16,383 10.250 6,433 5.550 574 76 (30) und shares in millions except per share amounts Net sales Cost of goods sold and occupancy expenses Gross profit Operating expenses Operating income Interest pense Interest income Income before income taxes Income taxes Net income Weighted average number of shares basic Weighted average number of shares de Earnings per share-bond Earnings per shared Coth dividends declared and paid per share Fiscal Year 2018 16,580 $ 10.258 6.322 4,960 1,362 73 (33) 1.322 319 1,003 5 385 15 ASS 9,789 6.066 4.587 1.479 74 (19) 1.424 576 848 383 396 2.1 2.14 0.92 177 351 $ 378 378 0.93 $ 0.93 5 0.975 2.61 5 2.50 $ 0.97 $ Gee Accompanying Notes to Comment THE GAP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 2019 Fiscal Year 2018 1.0035 2017 $ 3515 548 12) 35 Net income Other comprehensive income foss), net oftar Foreign currency translation Change in fair value of delvalve financial instruments, net of taxtax benefit of $5, $(4), and 5(9) Rection edustments on derivative financial instruments not oftas) tax benefit of $5), 56, and $3 One comprehensive income foss), net of tax Comprehensive income 13 54 (51) (2) (24) (13) 3:36 (20) 17 1.020 See Accompanying Notes to Consolidated Financial Statements THE GAP, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Common Stock Addit Paldi Share Am Capital 3995 201 #1 Retained Earning $ 2,7495 Accumulated Other Comprehensive Inc 1 2,804 (5) 3 MA ) BB (12) 3151 133 (1) (156) (158) and shares in miliona except per share amounts) Balance of January 20, 2017 Cunetect of change in die plated to share-based common Netico Other comprehensive that of tax Raport and retirement of common stock como okrowed to wock options and employee wick purchase plane of common Mack and wholding tax payments led to vestinga socks She continettore Commons Gids (3092 parhaat Balance of February 1, 2018 Gived a change in ingriple rated to revenue tannition 30 140 1101 76 15 3,01 (30) 2144 1.000 1.000 17 (14) (12 2001 45 Other comprensivos, net of Purchase andmete common stocked to one and employee stock pl comowa wingi peal to esting habe compense of four Convidde (30 97 per where of February 2, 2018 trengerprinted to be 23 101 105 aj 1,481 378 TE a 1853 151 1121 Onoranta Rauchen ons and presso not doing a rendered logo 151 32 (2003 (167 750 25 25 2 71 211 T1 Conocido of February 2008 (364) TI 90 . Se Accompeng Notes to consolidated Financial Statemente 42 THE GAP, INC. CONSOLIDATED STATEMENTS OF CASH FLOW PY NET $ 351 $ 1003 $ MA 557 578 181) 91 559 1001 17 58 209 Cash flow from operating activities Not income Adjustments to reconciliane income to net cash provided by opening activities Depreciation and amartin Amortization of lasercentives Share-based compensation Impamento operating an assets Impairment of stories Los on pooperty and equipment Non-cash and otherm Den sweat buldre Oled income Change in operating and Merchandisinventory On est ets and other long-term as 14 23 70 (10) (191) 51 miss. & (150 4 105 6 110 raisi $13.31:38 (142) 33 1901) 34 (52) 461) 1.411 110 CO Cos Andres daher uns Inne pyetine o prepaid and otherm Lesents and the long-lambe Operating and bites, nel To provided by ting Castro negative Property and Purchase of building Procesom sale of bong Purchase of hovements Press from west of minstens Purchase of and Jack e produto on and on O cadang Cashflows from anong Payment Precompensation Whawarter of locks (14 220 2033 293 14641 25 20 2001 33 3) Other Ce of the Nielsen Cascais 40 CAM 1 . 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