***You must use cell references to earn credit.
GAP Inc. Common Size Income Statement	12 Months Ended-in millions $			Percentages
	Jan. 28, 2023	Jan. 29, 2022	Jan. 30, 2021	Jan. 28, 2023	Jan. 29, 2022	Jan. 30, 2021
Net sales	$ 15,616	$ 16,670	$ 13,800	100.00%	100.00%	100.00%
Cost of goods sold and occupancy expenses	10,257	10,033	9,095	65.68%	60.19%	65.91%
Gross profit	5,359	6,637	4,705	34.32%	39.81%	34.09%
Operating expenses	5,428	5,827	5,567	34.76%	34.96%	40.34%
Operating income (loss)	(69)	810	(862)	-0.44%	4.86%	40.34%
Loss on extinguishment of debt	0	325	58	0.00%	1.95%	0.42%
Interest expense	88	167	192	0.56%	1.00%	1.39%
Interest income	(18)	(5)	(10)	-0.12%	-0.03%	-0.07%
Income (loss) before income taxes	(139)	323	(1,102)	-0.89%	1.94%	-7.99%
Income tax expense (benefit)	63	67	(437)	0.40%	0.40%	-3.17%
Net income (loss)	$ (202)	$ 256	$ (665)	-1.29%	1.54%	-4.82%
a. Review the vertical analysis and provide the two largest expenses for the current year. Explain the trend over the three years for these two expenses and discuss how these costs affects net earnings.
b. Discuss the fluctuations in interest expense. What are reasons that could cause changes in interest expense? You need to provide specific causes for the applicable company that relates specifically to the interest expense.
c. Discuss the fluctuations in income tax expense. What are reasons that could cause changes in income tax expense? You need to provide specific causes for the applicable company that relates specifically to the income tax expense.
d. Was the company more or less profitable when compared to the prior year? Using the specific income statement ratios or amounts, explain what caused the change in income from the prior year.