The GAP, INC. Compute, Disaggregate and Interpret ROE and ROA Income statements for The Gap, Inc., follow, along with selected balance sheet information ($ millions). Consolidated Statement of Earnings Fiscal year ended Feb. 3, 2018 Jan. 28, 2017 Net sales $15,855 $15,516 Cost of goods sold and occupancy expenses 9,789 9,876 Gross profit 6,066 5,640 Operating expenses 4,587 4,449 Operating income 1,479 1,191 Interest expense 74 75 Interest income (19) (8) Income before income taxes 1,424 1,124 Income taxes Net earnings 576 $848 448 $676 The GAP, INC. Selected Balance Sheet Data Feb. 3, 2018 Jan. 28, 2017 Merchandise inventories $1,997 $1,830 Total assets 7,989 Total stockholders' equity 3,144 7,610 2,904 Assume a statutory tax rate of 35%. a. Compute the return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL) for the fiscal year ended February 3, 2018. (Round your answers to one decimal place.) ROE % ROA ROFL % % b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). (Round your answers to one decimal place.) PM AT % c. Compute the gross profit margin (GPM) and inventory turnover (INVT) ratios for the fiscal year ended February 3, 2018. (Round your answers to one decimal place.) GPM % INVT