frp2 - NAME: TA: C West Financial Reporting Project #2 Use...

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Unformatted text preview: NAME: TA: C West Financial Reporting Project #2 Use the instructions from the first FRP. For Gap and Limited, you will need the 2006 and 2005 annual reports. For the 2005 annual report you will only use the 2004 column (since the 2006 report has the 06 and 05 numbers. Please note that I have provided some answers to help you figure out the rest. of your calculation and carry your answer out to 1/10th of a %, or 3 decimal points. Liquidity is an important factor for companies to monitor… think about why that is and do the following. Company/Year Company/Year Company/Year Ratio Gap 2006 Gap 2005 Gap 2004 Current Ratio 5,029 = 2.213 5,239 = 2.698 6,304 = 2.812 (See page 331 of your 2,272 1,942 2,242 book) Company/Year Company/Year Company/Year Ratio Limited 2006 Limited 2005 Limited 2004 Current Ratio 2,771 = 1.62 2784= 1.77 2,684 = 1.850 1,709 1575 1,451 Company/Year Company/Year Company/Year Gap 2006 Gap 2005 Gap 2004 Gross Margin % 5649= 35.4% 5,869= 36.6% 6,381= 39.2% 15943 16023 16267 Company/Year Company/Year Company/Year Limited 2006 Limited 2005 Limited 2004 Gross Margin % 4013= 37.6% 3480= 35.9% 3394= 36.1% 10671 9669 9408 Use your book to get more info on these ratio's. 2006 2005 2004 Which company is more liquid in each year? Gap Gap Gap (use the current ratio) P. 331 tells what a good current ratio is 1 . Compute the following ratios or % for Jamba Juice ---------. Show the components of the numerator and denominator (example: 2,300/3,400=.676 or 67.6%. This is just to show style and not actual formulas). 2 . Answer the following: What is the trend for each company (what is the ability for each company to cover other costs after cost of good sold)? The Gap decreases for each year while the limited goes down then recovers the following year....
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This homework help was uploaded on 04/16/2008 for the course ACCT 221 taught by Professor Catherinewest during the Fall '06 term at UMass (Amherst).

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frp2 - NAME: TA: C West Financial Reporting Project #2 Use...

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