AaA > 321 AABBCAAB | | . 13.Price/Earnings Ratio I 14.Debt to Assets Ratio 15.Times Interest Earned Ratio words English (United States B 2 A 3 1 0 A 2 S 4 3 % 5 6 & 7 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 STATEMENTS OF STOCKHOLDERS' EQUITY Commen Stock Accumulated Other Comprehensive Income Additional Paldin Retained Capital Earnings 81 $ 2.7495 Shares Amount 3095 20 Total $ 2,504 05) 21 M (13) (1) (156 (215) 2 30 50 1 118) 78 75 001) 2,144 (36) 2,081 15 . 38 1.003 1.000 and shares in millions except per share amounts) Balance as of January 21, 2017 Cumulative effect of a change in accounting priseiple related to share based compensation Net income Other comprehensive loss net of tax Repurchases and retirement of common stock Iance of common stock related to stock options and employee stock anch of common stock and wholding tax payments related to vesting of stock units Share-based compensation, not of forestur Common se dividends (50 92 per share) Balance as of February 3, 2018 Cum fat effect of a change counting principle attend to revenue recognition Net income Other comprehensive income, net ofte Repurchases and retirement of common stock Iance of common stock related to stock options and employee stock Puchate plane Ince of common stock and wholding tax payments related to verting of wlock unita Share-based companion, net of forteres Common stock dividende (37 pershare) Bolante of February 2, 2010 Cumulative effect of a change in accounting principle related to me Nel income Other comprehensive lossnat often Reches and rement of common och Infcommon stock to work on and otployee wick purchase plans Istance of common stock and wholding tax payments related to vesting of ok Share-based compensation of forteres Carmen och dividends (3097 per Balance of February 1, 2020 (14) (132) (206) 2 40 40 101 10T 7) 2.559 a) 3.461 M 378 351 (15) (10) 75) 25 2 0211 71 0641 1316 371 19 $ 3. See Accompanying Notes to Consolidated Financial Statements 42 THE GAP, INC. CONSOLIDATED STATEMENTS OF CASH FLOW 351 5 SER 557 578 10 559 10 16 87 239 14 28 4 TE 110 70 10 (191) BU) WO 11 CO 105 16 110 1901 (10) 13 Cash flows from operating Net income Adjustments to reconcile relome to tash provided by operating at Depreciation and motion Amortion of leasencentives Share and comes to imponent of operating e assets moment of stone Los on our property and equipment Non cash and other hans Isle of building Defend income taxes Changes in pering and be Merchandise Other unnt and long-term Accounts payable Acorders and other current come lauat payable at of prepaid and other related La incentives and other femmes Operations and Netca preved by operating av Cash from Muchases of property and Purchase of widg Produse bung Purchases of the mente Protowe show Puso Jani and Jack edo ou o propertiment 00 for www.thom firing Payment del Perbedaan wood movies Commons Cash dhe ped O end E he 1,411 TOS 721 Cruz 3 220 2003 200 1440 117 1603 BI 34 11.0011 006 46 015) 1) 204 Dri (1) 10 CIE ed 10 37 90 1.00 Web 1420 131 LIST $ Fantasy and 14 1 1 Ce power con fungerende 1 $ 1 70 70 140 1 1 178 1 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 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 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