Question: The Gap Inc is a global specialty retailer of casual

The Gap, Inc., is a global specialty retailer of casual wear and personal products for women, men, children, and babies under the Gap, Banana Republic, Old Navy, Athleta, and Piperlime brands. As of January 31, 2012, the Company operated 3,036 stores across the globe, as well as online. The following is a note from a recent annual report:


Required:
1. Assuming that The Gap, Inc., did not have any asset impairment write-offs but did sell property, plant, and equipment in the most recent year with a cost of $501 million and an accumulated depreciation of $384 million, what was the amount of depreciation expense recorded in the current year?
2. Assume that The Gap, Inc., failed to record depreciation in the current year. Indicate the effect of the error (i.e., overstated or understated) on the following ratios:
a. Earnings per share
b. Fixed asset turnover
c. Current ratio
d. Return on assets


View Solution:


Sale on SolutionInn
Sales0
Views71
Comments
  • CreatedJuly 01, 2014
  • Files Included
Post your question
5000