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4-40 Gap Inc. Financial Statements (Alternates are 4-36 and 4-51.) Gap Inc. is a specialty retailer of clothing, accessories, and personal care products for men,

4-40 Gap Inc. Financial Statements

(Alternates are 4-36 and 4-51.) Gap Inc. is a specialty retailer of clothing, accessories, and personal care products for men, women, children, and babies. Products are sold under Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. Actual financial data and nomenclature from its January 29, 2011, annual report are given next ($ in millions):

Net sales $14,664 Earnings before income taxes $ ?
Gross profit 5,889 Income taxes 778
Operating income 1,968 Retained earnings
Operating expenses ? Beginning of year 10,815
Cost of goods sold ? End of year ?
Interest income 14 Dividends declared 252
Net earnings ?
  1. Compute the missing values. Prepare a multiple-step statement of income for the year ended January 29, 2011.

  2. Compute the ending balance in Retained Earnings as of January 29, 2011.

  3. Compute the percentage of gross profit on sales and the percentage of net earnings on sales.

  4. The average common stockholders equity for the year was $4,485.5 million. What was the return on average common stockholders equity?

Please do not copy and paste. Thanks

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