How R Us Doing? Examine the comparative in- come statements and balance sheets of Toys “R” Us, Inc., and answer the following questions:

a. Based on the income statements, what is your assessment of this company’s performance? Explain.

b. Based on the balance sheets, what is your assessment of this company’s leverage and solvency? Explain. Has the company’s solvency changed significantly?

c. What is your assessment of this company’s liquidity?
Support your view by presenting common indicators of liquidity. Has the company’s liquidity changed significantly?

d. What is your conclusion regarding this company’s performance and financial position? Explain.