1. Selected recent balance sheet and income statement information for The Gap, Inc. follows:
(in millions) 2011
Year-end accounts payable $1,066
Average accounts payable 1,058
Cost of goods sold 9,275
Accounts payable days outstanding for 2011 is
2. How are operating leases reported in the lessee’s balance sheet?
A) As an asset that is depreciated, similar to the company’s other assets.
B) As either a short-term or long-term liability, depending on the length of the lease
C) At the present value of the future minimum lease payments.
D) Operating leases are not disclosed in the lessee’s balance sheet or annual report.
E) None of the above
These short answer questions belong to Finance. The 1st question is about calculating the number of days outstanding for accounts payable and the 2nd question is about how operating leases are reported in lessee’s balance sheet.
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