Question
In: Finance
Gap Inc.'s Sales, Cost of Goods Sold, and Gross Profit The consolidated balance sheets of Gap...
Gap Inc.'s Sales, Cost of Goods Sold, and Gross Profit
The consolidated balance sheets of Gap Inc. included merchandise inventory in the amount of $1,600 as of January 30, 2016 (the end of fiscal year 2015) and $1,639 as of January 31, 2015 (the end of fiscal year 2014). Net sales were $14,542 and $14,688 at the end of fiscal years 2015 and 2014, respectively. Cost of goods sold and occupancy expenses were $9,283 and $8,793 at the end of fiscal years 2015 and 2014, respectively. All amounts are from Gap Inc.’s 2015 Form 10-K.
How does this entry affect the accounting equation?
If a financial statement item is not affected, select "No Entry"
and leave the amount box blank or enter "0". If the effect is
negative, use the minus sign.
Enter amounts in millions of dollars. For example, 12,400,000,000
would be entered as 12,400.
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | – | Expenses | = | Income | |||||
| Cash | No Entry | 0 | Sales | No Entry | 0 | |||||||||
Reconstruct the Cost of Goods Sold section of Gap Inc.'s 2015 income statement. Enter amounts in millions of dollars. For example, 12,400,000,000 would be entered as 12,400.
| Gap Inc. | |
| Cost of Goods Sold | |
| For the Year 2015 | |
| Merchandise inventory, 1/31/15 | $ |
| Cost of goods purchased | |
| Cost of goods available for sale | $ |
| Merchandise inventory, 1/30/16 | |
| Cost of goods sold | |
5. Calculate the gross profit ratios for Gap Inc. for 2015 and 2014. If required, round the percentage to one decimal place.
| Gap's 2015 gross profit ratio: | % |
| Gap's 2014 gross profit ratio: | % |
Solutions
Expert Solution
| Sl.No | Particulars | Computation | Amount in $ |
| i | Merchandise inventory, 1/31/15 | Given | 1,639 |
| ii | Cost of goods purchased | iii-i | 9,244 |
| iii | Cost of goods available for sale | iv+v | 10,883 |
| iv | Merchandise inventory, 1/30/16 | Given | 1,600 |
| v | Cost of good sold | Given | 9,283 |
Gap's 2015 Gross profit = Sales in 2015-cost of goods sold for 2015 = 14,542-9,283 = 5,259
Gap's 2014 Gross profit = Sales in 2014-cost of goods sold for 2014 = 14,688-8,793 = 5,895
Gap's 2015 gross profit ratio = Gap's 2015 Gross profit/sales in 2015 = 5,259/14,542 = 36.16%
Gap's 2014 gross profit ratio = Gap's 2014 Gross profit /sales in 2014 = 5,895/14,688 = 40.13%
jeff jeffy answered 2 years agoRelated Solutions
Gap Inc.'s Sales, Cost of Goods Sold, and Gross Profit The consolidated balance sheets of Gap...
Gap Inc.'s Sales, Cost of Goods Sold, and Gross Profit
The consolidated balance sheets of Gap Inc. included merchandise
inventory in the amount of $1,619 as of January 30, 2016 (the end
of fiscal year 2015) and $1,637 as of January 31, 2015 (the end of
fiscal year 2014). Net sales were $14,531 and $14,658 at the end of
fiscal years 2015 and 2014, respectively. Cost of goods sold and
occupancy expenses were $9,271 and $8,799 at the end of...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000
Gross profit $ 141,000 $ 148,000 Operating expenses 130,000 116,000
Net income $ 11,000 $ 32,000 a. Prepare common size income
statements for Price Company, a sole proprietorship, for the two
years shown as above by converting the dollar amounts into
percentages. For each year, sales will appear as 100 percent and
other items will be expressed as a percentage of sales. (Income
taxes are not involved as the...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $...
Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000
Gross profit $ 141,000 $ 148,000 Operating expenses 130,000 116,000
Net income $ 11,000 $ 32,000 a. Prepare common size income
statements for Price Company, a sole proprietorship, for the two
years shown as above by converting the dollar amounts into
percentages. For each year, sales will appear as 100 percent and
other items will be expressed as a percentage of sales. (Income
taxes are not involved as the...
The consolidated balance sheets of Gap Inc. included merchandise inventory in the amount of $1,610 as...
The consolidated balance sheets of Gap Inc. included merchandise
inventory in the amount of $1,610 as of January 30, 2016 (the end
of fiscal year 2015) and $1,631 as of January 31, 2015 (the end of
fiscal year 2014). Net sales were $14,567 and $14,680 at the end of
fiscal years 2015 and 2014, respectively. Cost of goods sold and
occupancy expenses were $9,270 and $8,773 at the end of fiscal
years 2015 and 2014, respectively. All amounts are from...
Compute ending inventory, cost of goods sold, and gross profit.
My question: Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit. (Round price index to 2 decimal places, e.g. 1.45 and final answers to 0 decimal places, e.g. 6,548.)
William’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, William adopted dollar-value LIFO and decided to use a single inventory pool. The company’s January 1 inventory consists of:
Category
Quantity
...
Using LIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Exercise 6-4A Calculate inventory amounts when costs are rising
(LO6-3)During the year, TRC Corporation has the following inventory
transactions.DateTransactionNumber of UnitsUnit CostTotal CostJan.1Beginning inventory52$44$2,288Apr.7Purchase132466,072Jul.16Purchase202499,898Oct.6Purchase112505,600498$23,858For the entire year, the company sells 432 units of inventory
for $62 each.Exercise 6-4A Part 22. Using LIFO, calculate ending inventory, cost
of goods sold, sales revenue, and gross profit.
alculating Gross Profit and Inventory Turnover The following table presents sales revenue, cost of goods sold,...
alculating Gross Profit and Inventory
Turnover
The following table presents sales revenue, cost of goods sold, and
inventory amounts for three computer/electronics companies, Dell
Inc., Hewlett-Packard Company, and Apple Inc.
$ millions
Fiscal year ending
Samsung Electronics Co. Ltd. (S. Korean
won)
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Revenues
203,205,987
225,692,667
198,103,613
Cost of goods sold
126,278,800
135,696,309
124,651,931
Inventory
15,817,504
17,634,868
16,247,413
Hewlett-Packard Company (US dollar)
Oct. 31, 2014
Oct. 31, 2013
Oct. 31, 2012
Revenues...
1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 60 $ 52 $ 3,120 Apr. 7 Purchase 140 54 7,560 Jul. 16 Purchase 210 57 11,970 Oct. 6 Purchase 120 58 6,960 530 $ 29,610 For the entire year, the company sells 450 units of inventory for $70 each.
1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
2. Using...
Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four...
Problem 6-2A Calculate ending inventory, cost of goods sold,
sales revenue, and gross profit for four inventory methods (LO6-3,
6-4, 6-5)
[The following information applies to the questions
displayed below.]
Greg’s Bicycle Shop has the following transactions related to its
top-selling Mongoose mountain bike for the month of March.
Greg's Bicycle Shop uses a periodic inventory system.
Date
Transactions
Units
Unit
Cost
Total Cost
March
1
Beginning inventory
20
$
250
$
5,000
March
5
Sale ($400
each)
15
March...
Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four...
Problem 6-2A Calculate ending inventory, cost of goods sold,
sales revenue, and gross profit for four inventory methods (LO6-3,
6-4,6-5) [The following information applies to the questions
displayed below.] Greg’s Bicycle Shop has the following
transactions related to its top-selling Mongoose mountain bike for
the month of March. Greg's Bicycle Shop uses a periodic inventory
system.
Date
Transactions
Units
Unit Cost
Total Cost
March 1
Beginning Inventory
20
$215
$4,300
March 5
Sale ($330 each)
15
March 9
Purchase
10...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You are trying to decide how much to save for retirement. Assume you plan to save...
- Please use a transformer, bridge full-wave rectifier and filter capacitor to design a power supply circuit...
- Research and describe 1. User Interface (UI) best practices * Describe UI best practices and principles....
- The paradox of thrift is an idea that was popularized by the early 20th century economist...
- To see for yourself how the central limit theorem works, let's say we have a normal...
- In examining and analyzing the challenges faced by companies engaging in the global arena, there are...
- R language create file Ass2.txt "("Macauley, Culkin" "Antoine, Doinel" "Ace, Ventura" "Tommy, DeVito" "Oda Mae, Brown"...
ADVERTISEMENT