Excerpted financial information from the records of The Gap, Inc., a major clothing retailer, follows (dollars in millions):
a. Compute the current ratio for each year.
b. Compute the gross margin for each year.
c. Compute inventory turnover and inventory days for 2007 and 2008; compute accounts payable turnover and accounts payable days for 2007 and 2008.
d. Comment on the company's solvency trend.