The Gap Inc. (GPS) operates specialty retail stores under such brand names as GAP, Old Navy, and
Fantastic news! We've Found the answer you've been seeking!
Question:
The Gap Inc. (GPS) operates specialty retail stores under such brand names as GAP, Old Navy, and Banana Republic. The following asset and liability data (in millions) were adapted from recent financial statements.
| Line Item Description | Year 2 | Year 1 | |
|---|---|---|---|
| Current assets: | |||
| Cash | $877 | $1,988 | |
| Short-term investments | - | 410 | |
| Inventory | 3,018 | 2,451 | |
| Prepaid and other current assets | 1,270 | 1,159 | |
| Total current assets | $5,165 | $6,008 | |
| Total current liabilities | $4,077 | $3,884 |
1. Compute quick assets for Years 2 and 1.
| Line Item Description | Quick Assets |
|---|---|
| Year 2 | $million |
| Year 1 | $million |
2. Compute the quick ratio for Years 2 and 1. Round your answers to two decimal places.
| Line Item Description | Quick Ratio |
|---|---|
| Year 2 | |
| Year 1 |
3. The Gap's quick assets have
from Year 1 to Year 2. Its quick ratio
by $ during Year 2. Overall, The Gap's liquidity position has
from Year 1 to Year 2.
Expert Answer:
Quick Assets Calculation Year 2 Quick Assets Cash 877 million Shortterm investments 0 million since ... View the full answer
Related Book For 
Posted Date:
