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>>>Gap's most current 10-Q reports "cash and equivalents" at $515,207,000 (8/98), down from $913,169,000 (1/98). Meanwhile, LT-debt stayed relatively unchanged at $496,250,000. (Where did the extra cash go?) That changes the LT-debt to Cash ratio from 0.543 to 0.96. Still well within the Cash-King criterion of LT-Debt/Cash of less than 1.5, but a disturbing change<<<

Without checking out the financial statements and if memory serves me, the cash went to buyback shares (approx. 400 million)and also for new construction, which has only a small depreciation expense affect on earnings and that's only if the construction was complete. Also, I think you have that debt-to-cash ratio backwards. Cash should be greater than 1.5 times LT-Debt.
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