Gap, Inc. is a leading global specialty apparel company with 3,263 Company-operated and franchise store locations in 2012. The company was established in 1969 and has several well-known brand names such as Gap, Banana Republic, and Old Navy. Excerpts from the company's annual report for the fiscal year ended January 28, 2012, are below. Gap paid cash dividends of $.45 per common share in fiscal 2012, and an average of 529 million shares were outstanding during the year. Assume that Gap has no stock options or convertible securities. The company's market price on January 28, 2012, was $18.93 per share. compute the following financial ratios for fiscal 2012: 1. Current ratio 2. Total debt to equity 3. Gross profit rate Income statement fo the year ended January 28, 2012: Net sales $14,549 Cost of sales 9,275 Gross profit $5,274 Operating expenses 3,836 Operating income 1,435 Interest expenses, net 69 Income before income taxes $1,369 Income taxes 536 Net income $833 Balance sheet January 28, 2012 January 29, 2011 Assets Cash and cash equivalents $1,885 $1,561 Inventories 1,615 1,620 Other current assets (summarized) 809 745 Total current assets $4,309 $3,926 Property and equipment (net) 2,523 2,562 Other assets 590 576 Total assets $7422 $7,065 Liabilities and stockholders' equity Current liabilities (summarized) $2,128 $2,095 Long-term liabilities (summarized) 2,539 890 Total liabilities $4,667 $42,985 Total liabilities and stockholders' equity $7,422 $7,065
Gap, Inc. is a leading global specialty apparel company with 3,263 Company-operated and franchise store locations in 2012. The company was established in 1969 and has several well-known brand names such as Gap, Banana Republic, and Old Navy. Excerpts from the company's annual report for the fiscal year ended January 28, 2012, are below. Gap paid cash dividends of $.45 per common share in fiscal 2012, and an average of 529 million shares were outstanding during the year.
Assume that Gap has no stock options or convertible securities. The company's market price on January 28, 2012, was $18.93 per share. compute the following financial ratios for fiscal 2012:
1.
2. Total debt to equity
3. Gross profit rate
Income statement fo the year ended January 28, 2012:
Net sales $14,549
Cost of sales 9,275
Gross profit $5,274
Operating expenses 3,836
Operating income 1,435
Interest expenses, net 69
Income before income taxes $1,369
Income taxes 536
Net income $833
Assets
Cash and cash equivalents $1,885 $1,561
Inventories 1,615 1,620
Other current assets (summarized) 809 745
Total current assets $4,309 $3,926
Property and equipment (net) 2,523 2,562
Other assets 590 576
Total assets $7422 $7,065
Liabilities and
Current liabilities (summarized) $2,128 $2,095
Long-term liabilities (summarized) 2,539 890
Total liabilities $4,667 $42,985
Total liabilities and stockholders' equity $7,422 $7,065
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