Excerpted financial information from the records of The Gap Inc., a major clothing retailer, follows (dollars in

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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 ((Sales - COGS)/Sales) for each year.
c. Compute inventory turnover and inventory days for 2019 and 2018; compute accounts payable turnover and accounts payable days for 2019 and 2018.
d. Comment on the company's solvency trend.

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Financial Accounting

ISBN: 978-1119745327

11th Edition

Authors: Jamie Pratt, Michael F Peters

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