A B C D E G H K L 12 Months Ended-in millions $ GAP Inc. Common Size Income Statement Percentages Jan. 30, 2021 Feb. 01, 2020 Feb. 02, 2019 Jan. 30, 2021 Feb. 01, 2020 Feb. 02, 2019 ** *You must use cell references to earn credit. Revenues $ 13,800 $ 16,383 $ 16,580 Cost of goods sold and occupancy expenses 9.095 10,250 10,258 Gross profit 4,705 6,133 6,322 Operating expenses 5,567 .559 4,960 Operating income (loss) (862 574 1,362 Loss on Extinguishment of Debt 58 0 0 Interest expense 192 76 73 0 Interest income (10) (30) (33) 1 Income (loss) before income taxes [1, 102) 528 1,322 2 Income taxes (437) 177 319 3 Net income (loss) $ (665) $ 351 $ 1,003 14 a. Review the vertical analyses and provide two major differences over the three years and discuss patterns that emerge? You should be focusing on specific accounts and not subtotals or totals. b. What are the company's two largest major expenses for the current year? 19 c. Discuss the fluctuations in interest expense and income taxes. What are the cause of these changes? You need to provide specific causes for the applicable company that relates specifically to the interest expense and income taxes. d. Was the company more or less profitable when compared to the prior year? Using the specific income statement ratios or amounts, explain what caused the change in income from the prior year. 26