Refer to the income statements for The Gap, Inc., presented below. a. Prepare common-size income statements for fiscal years 2014 (ending January 31, 2015) and 2013 (ending February 1, 2014). Round answers to one decimal place (i.e., 0.2568 = 25.7%). The Gap, Inc. Common-Size Income Statements Fiscal year ended Jan. 31, 2015 Feb. 1, 2014 Net sales $16,435 0% $16,148 0 % Cost of goods sold & occupancy expenses 10,146 Gross profit 0 % 9,855 0% 6,289 0 % 6,293 0 % Operating expenses 4,206 0% 4,144 0 % Operating income 2,083 0% 2,149 0 % Interest expense 75 0 % 61 0% Interest income (5) 0 % (5) 0% Income before income taxes 2,013 0 % 2,093 0% Income taxes 751 0% 813 0% Net earnings $1,262 0 % $1,280 0 %
Refer to the income statements for The Gap, Inc., presented below. a. Prepare common-size income statements for fiscal years 2014 (ending January 31, 2015) and 2013 (ending February 1, 2014). Round answers to one decimal place (i.e., 0.2568 = 25.7%). The Gap, Inc. Common-Size Income Statements Fiscal year ended Jan. 31, 2015 Feb. 1, 2014 Net sales $16,435 0% $16,148 0 % Cost of goods sold & occupancy expenses 10,146 Gross profit 0 % 9,855 0% 6,289 0 % 6,293 0 % Operating expenses 4,206 0% 4,144 0 % Operating income 2,083 0% 2,149 0 % Interest expense 75 0 % 61 0% Interest income (5) 0 % (5) 0% Income before income taxes 2,013 0 % 2,093 0% Income taxes 751 0% 813 0% Net earnings $1,262 0 % $1,280 0 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**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 2014 (ending January 31, 2015) and 2013 (ending February 1, 2014). Round answers to one decimal place (i.e., 0.2568 = 25.7%).
**The Gap, Inc.**
**Common-Size Income Statements**
| Fiscal year ended | Jan. 31, 2015 | Feb. 1, 2014 |
|-------------------|---------------|--------------|
| Net sales | $16,435 | $16,148 |
| Cost of goods sold & occupancy expenses | 10,146 | 9,855 |
| Gross profit | 6,289 | 6,293 |
| Operating expenses | 4,206 | 4,144 |
| Operating income | 2,083 | 2,149 |
| Interest expense | 75 | 61 |
| Interest income | (5) | (5) |
| Income before income taxes | 2,013 | 2,093 |
| Income taxes | 751 | 813 |
| Net earnings | $1,262 | $1,280 |
**Explanation:**
The table presents the common-size income statements for The Gap, Inc. It includes financial figures for two fiscal years: 2014 and 2013. Key components such as net sales, cost of goods sold & occupancy expenses, and net earnings are detailed for each fiscal year. Each financial metric is expressed in thousands of dollars, providing a clear comparison over the two-year period.
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