A3. (Leverage ratios) For Gap, assume that all cost of goods sold and operating expenses are variable expenses. Compute the following ratios for 2014:

A. Operating leverage effect B. Financial leverage effect C. Total leverage D. Capital structure leverage

The Gap, he CONSOLIDATED BALANCE SHEETS (USD S) In millions, unless otherwise specified Feb. 1, Feb. 2 2014 2013 Current assets: Cash and cash equivalents Short-term investments $1,510 $1,460 50 1,928 1,758 992 864 4,430 4,132 2,758 2,619 661 719 7.849 7470 Merchandise inventory Other current assets Total current assets Property and equipment, net Other long-term assets Total assets Current liabilities: Current maturities of debt 0 1,242 1,144 1,142 1,092 108 2,445 2,344 25 Accounts payable Accrued expenses and other current liabilities Income taxes payable Total current liabilities Long-term liabilities: Long-term debt Lease incentives and other long-term liabilities Total long-term liabilities Stockholders' equity Common stock $0.05 par value, authorized 2,300 shares and Issued 1,106 shares for all periods presented; outstanding 446 and 463 shares 1,369 1,246 973 986 2342 2,232 Additional paid-in capital Retained earnings Accumulated other comprehensive income Treasury stock at cost (660 and 643 shares) 2,899 2,864 14,218 13,259 135 181 -14,245-13,465