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Problem Gap Inc. is a specialty retailer of clothing, accessories, and personal care products for men, women, children, and babies. Products are sold under Gap,
Problem Gap Inc. is a specialty retailer of clothing, accessories, and personal care products for men, women, children, and babies. Products are sold under Gap, Old Navy, Banana Republic, Piperlime, and Athleta brands. Actual financial data and nomenclature from its January 29, 2011, annual report are given next (S in millions) $14,664 Earnings before income taxes ? Net sales Gross proft Operating income Operating expenses Cost of goods sold Interest income 778 5.889 Income taxes 1.968 Retained earnings ? Beginning of year 10,815 End of year 14 Dividends declared 252 Net eanings 1. Compute the missing values Prepare a multiple-step statement of income for the year ended January 29, 2011 2. Compute the ending balance in Retained Earnings as of January 29 2011 3 Compute the percentage of gross profit on sales and the percentage of net earnings on sales. 4. The average common stocknolders' equity for the year was $4 485.5 million. What was the return on average common stockholders' equity
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