In its 2018 annual report, Gap Inc. reported inventory of $1,997 million on January 31, 2018, and
Question:
In its 2018 annual report, Gap Inc. reported inventory of $1,997 million on January 31, 2018, and $1,830 million on February 1, 2017, cost of goods sold of $9,789 million for 2018, and net sales of $15,855 million. Compute Gap’s inventory turnover and the average days to sell inventory for the fi scal year 2018.
Step by Step Answer:
Inventory turnover ...View the full answer
Intermediate Accounting
ISBN: 978-1119503668
17th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Business questions
-
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2018 annual report as follows. At December 31, 2015, common shares consisted of the following: Common...
-
You have obtained the following information about Plantagenet Inc. (Plantagenet) from its 2018 annual report: i. Plantagenet's year-end is June 30. ii. Sales for the year ended June 30, 2018 were...
-
The following is from the 2018 annual report of Kaufman Chemicals, Inc.: Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows:...
-
Locate the centroid of the region bounded by the given curves. about x = 5, y = 2x2, y = 0, x = 5 < UseHorizontal ElementOf Area > x = 5 y = 2x? y = 0
-
Discuss the similarities and differences between RNA polymerase (described in this chapter) and DNA polymerase (described in Chapter 11).
-
With respect to the war story, which type of dimension(s) of quality should Papa Johns focus more on? Why?
-
What performance measure would you consider most important for McDonald's? For Chevrolet?
-
On May 1, 2008, Friendly Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shortly after issuance, the bonds were selling at 98, but the market value...
-
A spherical beach pebble is completely submerged under sea water of mass density (not weight density!) 1041 kg/m3. The water exerts an upward buoyant force of magnitude 181 N on the pebble. What is...
-
It is often said that consumers receive free content online. Is this the case? Why or why not?
-
Marvin Gaye Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest...
-
The financial statements of M&S are presented in Appendix E. The companys complete annual report, including the notes to the financial statements, is available online. Instructions Refer to M&Ss...
-
Home equity, student, and auto loans are special-purpose consumer loans. Which ones offer the unique benefit of tax deductibility for interest paid?
-
What should someone be willing to pay for each of the bonds in question 1A.5 if the interest rate doubled to 7 percent? Data from question 1A.5 Determine what someone should be willing to pay for...
-
You learned that when the minimum efficient scale in a market is smaller, there is likely more competition in the market. How might this observation inform whether higher fixed costs are associated...
-
For each of the following scenarios, decide whether you agree or disagree and explain your answer. a. Suppose that elasticity of demand for hospital services is -0.15 and that the British government...
-
What are some primary differences and similarities in governance practices between the United States and other countries?
-
Steve Collins runs the SC Steak House in London. The restaurant has been in business for 30 years and is one of the most recommended steak houses in London. The total value of the restaurants capital...
-
Suppose that the government of a nation who's producer export coffee burns one-third of all the coffee fields before they can be harvested. Explain the impact of this action on the global price and...
-
In each of the following independent cases, document the system using whatever technique(s) your instructor specifies. a. Dreambox Creations (www.dreamboxcreations.com/) in Diamond Bar, California,...
-
Using the data in BE3-3, journalize the entry on July 1 and the adjusting entry on December 31 for Zubin Insurance Co. Zubin used the accounts Unearned Insurance Revenue and Insurance Revenue.
-
Assume that on February 1, Marks and Spencer plc (M&S) (GBR) paid 72,000 in advance for 2 years insurance coverage. Prepare M&Ss February 1 journal entry and the annual adjusting entry on June 30.
-
Prepare the following adjusting entries at August 31 for Nokia (FIN). (a) Interest on notes payable of 300 is accrued. (b) Fees earned but unbilled total 1,400. (c) Salaries earned by employees of...
-
For a certain multi-state lottery the prize was $12,200,000 that was paid out over 20 years with each year payments of $610,000.00 paid at the end of each year. If money is worth 6.4%, compounded...
-
Ivaco Inc. ' s dividends are forecast to increase over the next three years at 1 2 % due to the introduction of their new line of industrial fasteners. The last dividend ( yesterday ) was $ 2 . 0 0...
-
An investment that pays you $3,500, five years from now, is worth $2,495 today, if the discount rate is 7%. If the discount were 4%, what would you be willing to pay for this investment?
Study smarter with the SolutionInn App