Reading and Interpreting Gap Inc.s Inventory Note The 2008 annual report for Gap Inc. includes the following
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1. What inventory costing method did Gap Inc. use prior to the 2006 fiscal year?
2. What inventory costing method did Gap Inc. change to beginning with the 2006 fiscal year? Why would a company decide to change its inventory method?
3. Gap Inc. values its inventory at the lower of cost or market. How does the company define market? What factors does it take into account in deciding whether to write down its inventory? Making Financial Decisions
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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