Question

Common-Size and Forecast Income Statements Refer to the income statements for The Gap, Inc., presented below. a. Prepare common-size income statements for fiscal years 2017 (ending February 3, 201 Round answers to one decimal place (i.e., 0.2568 = 25.7%). The Gap, Inc. Common-Size Income Statements Fiscal year ended Feb. 3, 2018 Jan. 28, 2017 Net sales $15,855 100 % $15,516 100 % Cost of goods sold & occupancy expenses 9,789 61.796 9,876 63.7 96 Gross profit 6,066 38.3 % 5,640 36.3% Operating expenses 4,587 28.9 96 4,449 28.796 Operating income 1,479 9.3 96 1,191 7.7 96 Interest expense 74 0.5 96 75 0.5 % Interest income (19) -0.1 % (8) -0.1 96 Income before income taxes 1,424 996 1,124 7.2 96 income taxes 576 3.696 448 2.9% Net earnings $848 5.396 $676 4.4 % b. Prepare an income statement forecast for the fiscal year 2018 (ending February 2, 2019), Type here to search O

Answer 1

	Feb 3, 2018		Jan 28, 2017
	Amount	Percent	Amount	Percent
	(a)	[(a) / $15855]	(b)	[(b) / $15516]
Net Sales	$       15,855	100.0%	$       15,516	100.0%
Cost of goods sold & occupancy expenses	$         9,789	61.7%	$         9,876	63.7%
Gross profit	$         6,066	38.3%	$         5,640	36.3%
Operating expenses	$         4,587	28.9%	$         4,449	28.7%
Operating income	$         1,479	9.3%	$         1,191	7.7%
Interest expense	$               74	0.5%	$               75	0.5%
Interest Income	$              -19	-0.1%	$                -8	-0.1%
Income before tax	$         1,424	9.0%	$         1,124	7.2%
Income tax expense	$             576	3.6%	$             448	2.9%
Net Earnings	$             848	5.3%	$             676	4.4%