The following data (in millions of dollars) were adapted from the January 29, 2005 and 2004 financial statements of The GAP Inc.:

1. Prepare a horizontal analysis income statement for GAP that includes gross profit and operating income before taxes. Round to one decimal place.
2. Comment on the results of your horizontal analysis ofGAP.

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For year ending Sales Cost of sales Operating expenses 2005 2004 $16,267 9,886 4,296 $15,854 9,885 4,068