Suppose the following information was reported by Gap, Inc.
a. Determine the overall percentage decrease in Gap’s total assets from 2018 to 2022. What was the average decrease per year?
b. Comment on the change in Gap’s liquidity. Does working capital or the current ratio appear to provide a better indication of Gap’s liquidity? What might explain the change in Gap’s liquidity during this period?
c. Comment on the change in Gap’s during this period.
d. Comment on the change in Gap’s profitability during this period. How might this affect your prediction about Gap’s future profitability?
