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Question
Review an Annual Report to gain a general understanding of the types
of financial information contained in the report and why that information might be useful to a potential reader. You will also be asked to locate specific financial accounting information in the report.
Fill in the answers to the the word document "Annual Report Project Spring 2016"
using the document "GPS 2015 Annual Report" (PDF) clearly and thoroughly
Name _________________________________
ACC 110
Financial Accounting Information for Decision-Making
Spring 2016
Annual Report Project
Objectives
Locate specific financial accounting information in the Gap Inc. (Gap) 2015 Annual Report.
Calculate various financial ratios and interpret.
Gain a better understanding of the financial aspects of Gap’s retail business.
Instructions
1.
Locate Gap Inc.’s 2015 Annual Report which has been posted to Blackboard with these instructions.
2.
There are 10 sections of questions.
You will find the information necessary to answer the questions in
“Item 8. Financial Statements and Supplementary Data,” beginning on page 32 of the report.
Read through
the questions carefully and answer in the space provided.
3.
Please submit your project in hard copy---do not e-mail
.
DUE DATE:
Thursday, May 5, 2016 (last day of class)
Late projects will not be accepted
.
Section 1.
Balance Sheet - Overview
1.
What are the following amounts at 1/30/16:
a.
Total Assets
__________________
b.
Total Liabilities
__________________
c.
Total Owner’s Equity
__________________
2.
At 1/30/16:
a.
What is the percentage of debt
used to finance Gap?
____________
b.
What is the percentage of owner’s equity
used to finance Gap?
____________
c.
What is the significance of these two percentages?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____
3.
At 1/30/16:
a.
What percentage of Gap’s total assets are current assets
?
__________
b.
What percentage of Gap’s total assets are noncurrent assets
?
__________
c.
Comment on whether this makes sense when you consider Gap’s line of business.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
____
Section 2.
Income Statement - Overview
1.
Is Gap’s 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 1/30/16:
a.
Net Sales
____________
b.
Cost of Goods Sold
____________
c.
Gross Margin
____________
d.
Gross Margin Percentage
____________
e.
Operating Income
____________
f.
Net Income
____________
Section 3.
Cash Flow Statement - Overview
1.
What are the following amounts for the year ended 1/30/16:
a.
Cash flows from operating activities
_______________
b.
Cash flows from investing activities
_______________
c.
Cash flows from financing activities
_______________
Section 4.
Current Assets
1.
What is the amount of Current Assets
at 1/30/16?
_______________
2.
What is the amount of Inventories
at 1/30/16?
_______________
a.
What valuation principle does Gap use to value these inventories?
_______________________________________________________________________
_
b.
Which cost flow assumption does Gap use to determine the cost of inventories?
2
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End of preview
Subject:
Accounting, Business
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