Look at the balance sheets and income statements for Toys R Us for the five years from 1993 to 1997 taken from its 10-K reports:

Note: The amounts shown in these statements may differ slightly from the reported amounts due to rounding.

a. Using financial ratios, describe the company’s operating performance and financial condition over this five-year period.

b. What other information do you need to complete your financial analysis of Toys R Us?

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Toys R Us Balance Sheet (in millions) 1997 1996 1995 1994 1993 Assets Cash and marketable securities $214 $761 $203 $370 $792 Receivables 175 142 129 116 99 Inventory 2,464 2,215 2,000 1,999 1,778 Other current assets 51 42 87 46 39 Net property and equipment 4,212 4,047 3,858 3,669 3,185 Intangibles 356 365 0 0 0 Other assets 491 451 460 371 257 Total assets $7,963 $8,023 $6,737 $6,571 $6,150