1. Is Gaps income statement presented in a single-step or multiple-step format? _____________________

Why do you think that format was used?

2. What are the following amounts for the year ended 2/2/19:

1. Net Sales ____________
2. Cost of Goods Sold ____________
3. Gross Margin ____________
4. Gross Margin Percentage ____________
5. Operating Income ____________
6. Net Income ____________

THE GAP, INC. CONSOLIDATED STATEMENTS OF INCOME Fiscal Year 2017 ($ and shares in millions except per share amounts) Net sales Cost of goods sold and occupancy expenses Gross profit Operating expenses Operating income Interest expense Interest income Income before income taxes Income taxes Net income 2018 2016 16,580 $ 15,516 9,876 5,640 4,449 1,191 75 15,855 $ 10,258 9,789 6,066 4,587 1,479 74 (19) 1,424 576 6,322 4,960 1,362 73 (33) 1,322 319 1,003 $ 385 388 1,124 448 676 399 400 1.69 1.69 0.92 848 $ 393 396 Weighted-average number of shares-basic Weighted-average number of shares-diluted 2.61 $ 2.59 $ 0.97 $ 2.16 $ 2.14 $ 0.92 $ Earnings per share-baSIC Earnings per share-diluted Cash dividends declared and paid per share