Compute, Disaggregate and Interpret ROE and ROA

Income statements for The Gap, Inc., follow, along with selected balance sheet information ($ millions).

The GAP, INC. Consolidated Statement of Earnings
Fiscal year ended	Jan. 31, 2015	Feb. 1, 2014
Net sales	$14,649	$14,664
Cost of goods sold and occupancy expenses	9,275	8,775
Gross profit	5,374	5,889
Operating expenses	3,836	3,921
Operating income	1,538	1,968
Interest expense	74	(8)
Interest income	(5)	(6)
Income before income taxes	1,469	1,982
Income taxes	536	778
Net earnings	$933	$1,204

The GAP, INC. Selected Balance Sheet Data
	Jan. 31, 2015	Feb. 1, 2014
Merchandise inventories	$1,415	$1,620
Total assets	7,222	7,065
Total stockholders' equity	2,755	4,080

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 31, 2015. (Round your answers to one decimal place.)

ROE
ROA
ROFL

b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). (Round your answers to one decimal place.)

PM
AT

c. Compute the gross profit margin (GPM) and inventory turnover (INVT) ratios for the fiscal year ended January 31, 2015. (Round your answers to one decimal place.)

GPM
INVT