The consolidated balance sheets of Gap Inc. included merchandise inventory in the amount of $1,625 as of January 30, 2016 (the end of fiscal year 2015) and $1,605 as of January 31, 2015 (the end of fiscal year 2014). Net sales were $14,529 and $14,663 at the end of fiscal years 2015 and 2014, respectively. Cost of goods sold and occupancy expenses were $9,273 and $8,790 at the end of fiscal years 2015 and 2014, respectively. All amounts are from Gap Inc.’s 2015 Form 10-K. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "0". If the effect is negative, use the minus sign. Enter amounts in millions of dollars. For example, 12,400,000,000 would be entered as 12,400. Balance Sheet   Income Statement                             Stockholders'   Net     Assets = Liabilities + Equity   Revenues – Expenses = Income Cash                        3.  Gap Inc. sets forth net sales but not gross sales on its income statement. What type(s) of deduction(s) would be made from gross sales to arrive at the amount of net sales reported?     4.  Reconstruct the Cost of Goods Sold section of Gap Inc.'s 2015 income statement. Enter amounts in millions of dollars. For example, 12,400,000,000 would be entered as 12,400. Gap Inc. Cost of Goods Sold For the Year 2015 Merchandise inventory, 1/31/15    Cost of goods purchased                  5.  Calculate the gross profit ratios for Gap Inc. for 2015 and 2014. If required, round the percentage to one decimal place. Gap's 2015 gross profit ratio:   Gap's 2014 gross profit ratio:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

The consolidated balance sheets of Gap Inc. included merchandise inventory in the amount of $1,625 as of January 30, 2016 (the end of fiscal year 2015) and $1,605 as of January 31, 2015 (the end of fiscal year 2014). Net sales were $14,529 and $14,663 at the end of fiscal years 2015 and 2014, respectively. Cost of goods sold and occupancy expenses were $9,273 and $8,790 at the end of fiscal years 2015 and 2014, respectively. All amounts are from Gap Inc.’s 2015 Form 10-K.

  1. How does this entry affect the accounting equation?
    If a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "0". If the effect is negative, use the minus sign.
    Enter amounts in millions of dollars. For example, 12,400,000,000 would be entered as 12,400.

    Balance Sheet   Income Statement                
                Stockholders'   Net    
    Assets = Liabilities + Equity   Revenues Expenses = Income
    Cash                     
     

    3.  Gap Inc. sets forth net sales but not gross sales on its income statement. What type(s) of deduction(s) would be made from gross sales to arrive at the amount of net sales reported?
     

     

    4.  Reconstruct the Cost of Goods Sold section of Gap Inc.'s 2015 income statement. Enter amounts in millions of dollars. For example, 12,400,000,000 would be entered as 12,400.

    Gap Inc.
    Cost of Goods Sold
    For the Year 2015
    Merchandise inventory, 1/31/15   
    Cost of goods purchased   
       
       
       

     

    5.  Calculate the gross profit ratios for Gap Inc. for 2015 and 2014. If required, round the percentage to one decimal place.

    Gap's 2015 gross profit ratio:  
    Gap's 2014 gross profit ratio:  
     
     
 

 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education