Compute, Disaggregate and Interpret ROE and ROA Income statements for The Gap, Inc., follow, along with selected balance sheet information (smillions). Consolidated Statement of Earnings The GAP, INC. Fiscal year ended Jan. 28, 2012 Jan 29, 2011 $14.649 $14.664 Cost of goods sold and occupancy expenses 9.275 4775 Gros profe 5374 $319 Operating expenses 1836 3.921 Operating income 1538 196 74 151 . Income before income taxes 1302 Income 536 779 $1.204 The GAP, INC. Selected Balance Sheet Data Jan. 28, 2012 Jan. 29, 2011 $1.420 7.066 4.000 Assume a statutory tax rate of 35 a. Compute the return on equity (ROE); return on assets (ROA) and return on financial leverage (ROFL) for the fiscal year ended January 20, 2012. (Round your answers to one decimal place.) 27.3% 13.06% ROE ROA ROFL 143% b. Disaggregate RDA into profit margin (PM) and asset turnover (AT) (Round your answers to one decimal place.) PM 63% M 21 c. Compute the gross profit margin (GPM) and inventory turnover (WT) ratios for the fiscal year ended January 20, 2012. (Round your answers to one decimal place.) GPM INVT 3674 6