Section 1. Balance Sheet - Overview

1. What are the following amounts at 2/1/20:
2. Total Assets __________________
3. Total Liabilities __________________
4. Total Owners Equity __________________

2. At 2/1/20:

1. What is the percentage of debt used to finance Gap? ____________
2. What is the percentage of owners equity used to finance Gap? ____________
3. What is the significance of these two percentages? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. At 2/1/20:

1. What percentage of Gaps total assets are current assets? __________
2. What percentage of Gaps total assets are noncurrent assets? __________
3. Comment on whether this makes sense when you consider Gaps line of business. ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Section 2. Income Statement - Overview

1. Is Gaps income statement presented in a single-step or multiple-step format? _____________________

Why do you think that format was used? ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. What are the following amounts for the year ended 2/1/20:

1. Net Sales ____________
2. Cost of Goods Sold ____________
3. Gross Margin ____________
4. Gross Margin Percentage ____________
5. Operating Income ____________
6. Net Income ____________

Section 3. Cash Flow Statement - Overview

1. What are the following amounts for the year ended 2/1/20:

1. Cash flows from operating activities _______________
2. Cash flows from investing activities _______________
3. Cash flows from financing activities _______________

Section 4. Current Assets

1. What is the amount of Current Assets at 2/1/20? _______________

2. What is the amount of Inventories at 2/1/20? _______________

1. What valuation principle does Gap use to value these inventories?

________________________________________________________________________

b. Which cost flow assumption does Gap use to determine the cost of inventories?

________________________________________________________________________

Section 5. Noncurrent Assets

1. What is the amount of Noncurrent Assets at 2/1/20? _______________

2. What is the amount of Property and Equipment (net) held by Gap at 2/1/20? _______________

1. How much depreciation has been recorded on these assets at 2/1/20? _______________
2. What method does Gap use to calculate depreciation? _______________________

3. What is the amount of Furniture and Equipment held by Gap at 2/1/20? _______________

Section 6. Current Liabilities

1. What is the amount of Current Liabilities at 2/1/20? _______________

2. What are the following amounts for the year ended 2/1/20:

1. Accounts Payable _______________
2. Current ratio _______________

Section 7. Noncurrent Liabilities

1. What is the amount of Noncurrent Liabilities at 2/1/20? _______________

2. How much of Gaps long-term debt will become due and payable in less than 1 year? ______________

Section 8. Shareholders Equity

1. At 2/1/20:

How many shares of common stock are: (a) authorized _______________

(b) issued _______________

(c) outstanding _______________

How many shares of preferred stock are: (a) authorized _______________

(b) issued _______________

(c) outstanding _______________

2. What was the amount of dividends paid to shareholders during 2019? _______________

Section 9. Other Information

Locate the following information in the Gap 2020 Annual Report:

1. Name of Gaps CEO __________________
2. Name of Gaps CFO __________________
3. Stock symbol on the New York Stock Exchange (NYSE) ___________________
4. Independent accountants (auditors) _________________________

Section 10. Recent Financial News

Search for a recent news article about Gap (within the past year) that discusses a topic which has financial implications to the company. Prepare a brief summary of the article (reference article here) and explain the importance or significance of this information to Gaps financial statements.