Analyze income statement. (LO 6)

The income statements for Williams-Sonoma Inc. for the fiscal years ended January 29, 2006, and January 30,2005 , are shown here. Compare the company's performance for the 2 years. Is the company controlling its cost of inventory? Is the company controlling its other expenses well? Be able to support your answers.

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Williams-Sonoma, Inc. Consolidated Statements of Earnings Fiscal Year Ended Jan 29, 20:06 Jan 30, XIDE Poliers in thousands) Net revenues 83,538,947 $3,136,931 Cost of goods sold 2,103,465 1,865,786 Gross margin 1,435,482 1,271,145 Selling, general and administrative expenses 1,090,392 961,176. Interest income (5,663) (1,899) Interest expense 1,975 1,703 Earnings before income taxes 348,798 310,205 Income taxes Nel earnings 133,932 8 214,866 118,971 $191,234