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Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello
Edition 16ISBN: 978-0077862381Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello
Edition 16ISBN: 978-0077862381 Exercise 68
A recent annual report issued by The Gap, Inc. revealed the following data:
The company's income statement reported total annual revenue of $14.5 billion and net income for the year of $833 million.
Instructions
a.valuate The Gap 's profitability by computing its net income percentage and its return on equity for the year.
b.valuate The Gap 's liquidity by computing its working capital and its current ratio at the beginning of the year and at the end of the year.
c.oes The Gap, Inc. appear to be both profitable and liquid Explain.
The company's income statement reported total annual revenue of $14.5 billion and net income for the year of $833 million.
Instructions
a.valuate The Gap 's profitability by computing its net income percentage and its return on equity for the year.
b.valuate The Gap 's liquidity by computing its working capital and its current ratio at the beginning of the year and at the end of the year.
c.oes The Gap, Inc. appear to be both profitable and liquid Explain.
Explanation
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Ratios are used to evaluate various aspe...
Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello
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