Inferring Transactions from Financial Statements

The GAP is a global clothing retailer for men, women, children, and babies. The following information

is taken from The Gap's annual report for the fiscal year ended February 2, 2019.

Selected Balance Sheet Data ($ millions) February 2019 February 2018

Merchandise inventory . . . . . . . . . . . . . . . . . . . . . . $2,131 $1,997

Accounts Payable. . . . . . . . . . . . . . . . . . . . . . . . . . 1,126 1,181

a.The Gap purchased inventories totaling $10,392 for the fiscal year ended February 2, 2019. Use

the financial statement effects template to record cost of goods sold for The Gap's fiscal year ended

February 2, 2019. (Assume accounts payable is used only for recording purchases of inventories and

all inventories are purchased on credit.)

b. What amount did the company pay to suppliers during the year? Record this with the financial state-

ment effects template