The Financial Reporting Project : Progress Report

1888 Words Oct 21st, 2015 8 Pages
The Financial Reporting Project
PROGRESS REPORT 1

Team 2
David Kaptzan, Erica Dennis, Sarah Anderson, Tyler Mitchell, Yiwei Shan

Prof. Daniel C. Moolman
ACCT1209 – Section 1; 8AM
Company Background
1. What is the ticker symbol of your company? Identify the stock exchange(s) where your company stock trades.
The ticker symbol for The Gap, Inc. is GPS. The stock is traded on the New York Stock Exchange.
2. Read the auditor’s report included in the annual report of the company and explain its purpose. Identify the name of the auditing firm.
The purpose of the auditor’s report is to explain that the independent auditors have examined the financial statements in the 10-K report and that to their knowledge, there
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Developments Related to the Company
A. Is the demand for the products and services provided by this company increasing, decreasing, or staying stable? Briefly explain the factors that are influencing the demand for products and services of this company.
From the income statement for the Gap, we can see that Net Sales for this year are more than last year’s and it is increasing steadily. From that aspect, we can determine that the demand for products is increasing over the years. To influence the demand for products, The Gap has to have quality products and new designs because in the fashion market, change is constant.
B. Identify and briefly explain significant events (technological breakthroughs, regulatory changes) that may have affected the company recently.
The Gap purchases its merchandise (both private label and non-private label) from vendors that have factories in over 40 different countries. No vendor was responsible for greater than 5% of their purchases in 2014. As a result, a significant event that affected one of their vendors would not necessarily have had a large impact on The Gap because it is only a small part of its business. Technological breakthroughs or regulatory changes would not likely directly affect The Gap’s operations. It would more likely affect their vendors and in turn affect the quantity
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