The Gap Inc. (GPS) operates specialty retail stores under such brand names as GAP, Old Navy, and Banana Republic. The following asset and liability data (in millions) were adapted from recent financial statements. Year 2 Year 1 Current assets: Cash $1,515 $1,510 Accounts receivable 275 462 Inventory 1,889 1,928 Prepaid and other current assets 638 530 Total current assets $4,317 $4,430 Total current liabilities $2,234 $2,342 1. Compute quick assets for Years 2 and 1. 2. Compute the quick ratio for Years 2 and 1. 3. The Gap’s quick assets have _______ from Year 1 to Year
The Gap Inc. (GPS) operates specialty retail stores under such brand names as GAP, Old Navy, and Banana Republic. The following asset and liability data (in millions) were adapted from recent financial statements. Year 2 Year 1 Current assets: Cash $1,515 $1,510 Accounts receivable 275 462 Inventory 1,889 1,928 Prepaid and other current assets 638 530 Total current assets $4,317 $4,430 Total current liabilities $2,234 $2,342 1. Compute quick assets for Years 2 and 1. 2. Compute the quick ratio for Years 2 and 1. 3. The Gap’s quick assets have _______ from Year 1 to Year
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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The Gap Inc. (GPS) operates specialty retail stores under such brand names as GAP, Old Navy, and Banana Republic. The following asset and liability data (in millions) were adapted from recent financial statements.
Year 2 | Year 1 | ||||
Current assets: | |||||
Cash | $1,515 | $1,510 | |||
Accounts receivable | 275 | 462 | |||
Inventory | 1,889 | 1,928 | |||
Prepaid and other current assets | 638 | 530 | |||
Total current assets | $4,317 | $4,430 | |||
Total current liabilities | $2,234 | $2,342 |
1. Compute quick assets for Years 2 and 1.
2. Compute the quick ratio for Years 2 and 1.
3. The Gap’s quick assets have _______ from Year 1 to Year
2. Its quick ratio ______ from fill ______ in Year 1 to ______ in Year 2. Overall, The Gap’s liquidity position has _______ from Year 1 to Year 2.
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