Question
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 | ? |
-
Compute the missing values. Prepare a multiple-step statement of income for the year ended January 29, 2011.
-
Compute the ending balance in Retained Earnings as of January 29, 2011.
-
Compute the percentage of gross profit on sales and the percentage of net earnings on sales.
-
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started