Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Income statements for The Gap, Inc., follow, along with selected balance sheet information ($ millions). The GAP, INC. Consolidated Statement of Earnings Fiscal year

image text in transcribed

Income statements for The Gap, Inc., follow, along with selected balance sheet information ($ millions). The GAP, INC. Consolidated Statement of Earnings Fiscal year ended Feb. 3, 2018 Jan. 28, 2017 Net sales $15,855 $15,516 Cost of goods sold and occupancy expenses 9,789 9.876 Gross profit 6,066 5,640 Operating expenses 4,587 4,449 Operating income 1,479 1,191 Interest expense 74 75 Interest income (19) (8) Income before income taxes 1,424 1,124 Income taxes 576 448 Net earnings $848 $676 The GAP, INC. Selected Balance Sheet Data Feb. 3, 2018 Jan. 28, 2017 Merchandise inventories Total assets $1,997 7,989 $1,830 Total stockholders' equity 3,144 7,610 2,904 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 February 3, 2018. (Round your answers to one decimal place.) ROE ROA ROFL 0% 0% 0% b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). (Round your answers to one decimal place.) PM AT 0% 0 c. Compute the gross profit margin (GPM) and inventory turnover (INVT) ratios for the fiscal year ended February 3, 2018. (Round your answers to one decimal place.) GPM INVT 0% 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethical Obligations and Decision Making in Accounting Text and Cases

Authors: Steven Mintz, Roselyn Morris

3rd edition

007786221X, 978-0077862213

More Books

Students also viewed these Accounting questions

Question

What is collectivism, and how is it different from individualism?

Answered: 1 week ago