The following information was reported by Gap, Inc. in its 2006 annual report.

(a) Determine the overall percentage decrease in Gap’s total assets from 2002 to 2006. What was the average decrease per year?
(b) Comment on the change in Gap’s liquidity. Does working capital or the current ratio appear to provide a better indication of Gap’s liquidity? What might explain the change in Gap’s liquidity during this period?
(c) Comment on the change in Gap’s solvency during this period.
(d) Comment on the change in Gap’s profitability during this period. How might this affect your prediction about Gap’s futureprofitability?

  • CreatedApril 21, 2012
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