The Gap, Inc. reports its financial results for 52-week fiscal periods ending on a Saturday around the

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The Gap, Inc. reports its financial results for 52-week fiscal periods ending on a Saturday around the end of January each year.

The following information (in US$ millions) was included in recent annual reports:

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Instructions

a. Comment on the changes in The Gap?s liquidity over the fiveyear period. Which measure seems to give a better indication of its liquidity: working capital or the current ratio? Suggest a reason for the changes in The Gap?s liquidity during the period.

b. Do you believe that The Gap?s creditors should be concerned about its liquidity?

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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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