Question

The GAP is a global clothing retailer for men, women, children, and babies. The following information is taken from The Gap's fiscal 2015 annual report.

a. The Gap purchased inventories totaling $10,314 million during fiscal 2015. Use the financial statement effects template to record cost of goods sold for The Gap's fiscal year ended 2015. (Assume accounts payable is used only for recording purchases of inventories and all inventories are purchased on credit.)

b. What amount did the company pay to suppliers during the year? Record this with the financial statement effects template.

Use negative signs with answers, if appropriate.

Selected Balance Sheet Data ($ millions)

2015

2014

Inventories

$1,901

$1,861

Accounts Payable

1,140

1,145