Using either Gap’s most current Form 10-K or the company’s annual report, answer the questions below. To obtain the Form 10-K use either the EDGAR system following the instructions in Appendix A, or the company’s website. The company’s annual report is available on its website.

Required

a. What was the average amount of inventory per store? Use all stores operated by The Gap, Inc., not just those called The Gap. (Hint: The answer to this question must be computed. The number of stores in operation at the end of the most recent year can be found in the MD&A of the 10-K.)

b. How many new stores did Gap open during the year?

c. Using the quarterly financial information in the 10-K, complete the following chart.

Quarter                 Sales during Each Quarter

1                                                $

2

3

4

d. Referring to the chart in Requirement c, explain why Gap’s sales vary so widely throughout its fiscal year. Do you believe that Gap’s inventory level varies throughout the year in relation to sales?