Using these links,

The GAP, Inc. (GPS) for year ended January 28, 2023 Direct link to 10-K https://www.sec.gov/ix?doc=/Archives/edgar/data/39911/000003991123000015/gps-20230128.htm

The TJX Companies, Inc. (TJX) for year ended January 28, 2023 Direct link to 10-K https://www.sec.gov/ix?doc=/Archives/edgar/data/109198/000010919823000004/tjx-20230128.htm

3a. Which financial statement shows merchandise inventories? What subsection of the statement does this account appear? What has been the dollar change from the past year to current year for each company? Make sure you identify the dollar amount change and if it is an increase or decrease. Make sure you identify in millions or thousands.

Which financial statement shows merchandise inventories? What subsection of the statement does this account appear? What has been the dollar change from the past year to current year for each company? Make sure you identify the dollar amount change and if it is an increase or decrease. GPS TJX

3b. Using the footnotes or notes to the financial statements identify how the company is costing inventory and the inventory costing method each company is primarily using. What is included in the inventory cost? Provide the page number of the note you are referencing.

.

3c. Compute the average days inventory outstanding for the current and past year for each company and show your calculations. Review page 6-13, which shows the formula as (365 times Average Inventory)/ Cost of Goods Sold. To determine the average inventory use the current year and past year inventory divided by 2, since the ending inventory of one year is the beginning inventory of the next year. Cost of Goods Sold is the same thing as Cost of Merchandise Sold. Round to the nearest day. You can find this information on the current 10-K except for the following information for 2021 Inventory for GPS $2,451 million and TJX $4,338 million. Comment on your results including a comparison of the two companies. You must show your work to earn full credit.

Round to the nearest daycurrent yearpast yearGPS TJX

Comments:

3d. Does the company face any inventory related risk? You need to use the 10-K Part 1A Risk Factors for both companies and find at least one risk factor that relates to inventory for each company. Comment on the risk factor you picked for each company. Explain why you picked this risk factor for each company. Provide the page number that you are referencing in this question.

3e. Compute Days Payable Outstanding (DPO) for the current and past year for each company and show your calculations. Review page 6-15, which shows the formula as 365 times Average Accounts Payable/Cost of Goods Sold. Cost of Goods Sold is the same thing as Cost of Merchandise Sold. Round to the nearest day. You can find this information on the current 10-K except for the following information for 2021 Accounts Payable for GPS $1,743 million and TJX $4,823 million. Comment on your results including a comparison of the two companies. You must show your work to earn full credit.

Round to the nearest daycurrentpast yearGPS TJX

Comment: