Common-Size and Pro Forma Income Statements Refer to the income statements for The Gap, Inc., presented below.

a. Prepare common-size income statements for fiscal years 2014 (ending January 31, 2015) and 2013 (ending February 1, 2014). Round answers to one decimal place (i.e., 0.2568 = 25.7%).

The Gap, Inc. Common-Size Income Statements
Fiscal year ended	Jan. 31, 2015		Feb. 1, 2014
Net sales	$15,779	Answer%	$15,492	Answer%
Cost of goods sold & occupancy expenses	9,925	Answer%	9,634	Answer%
Gross profit	5,854	Answer%	5,858	Answer%
Operating expenses	3,983	Answer%	3,921	Answer%
Operating income	1,871	Answer%	1,937	Answer%
Interest expense	73	Answer%	59	Answer%
Interest income	(3)	Answer%	(3)	Answer%
Income before income taxes	1,801	Answer%	1,881	Answer%
Income taxes	702	Answer%	734	Answer%
Net earnings	$1,099	Answer%	$1,147	Answer%

b. Prepare a pro forma income statement for the fiscal year 2015 (ending January 30, 2016), based on the following assumptions: - Net sales total $14,000 million. - Cost of goods sold and occupancy expenses are 64% of sales. - Operating expenses total 26% of sales. - Interest income and interest expense are unchanged from the 2014 amounts. - The Gap's effective tax rate is 39%.

Round answers to the nearest dollar. Use rounded answers for subsequent calculations. Use a negative sign with your interest income answer only.

The Gap, Inc. Proforma Income Statement
	Jan. 30, 2016
Net sales	$Answer
Cost of goods sold & occupancy expenses	Answer
Gross profit	Answer
Operating expenses	Answer
Operating income	Answer
Interest expense	Answer
Interest income	Answer
Income before income taxes	Answer
Income taxes	Answer
Net earnings	$Answer