Locate the most recent 10-K filing by Toys ‘R’ Us and Gillette in the EDGAR archives (www.sec.gov/edaux/searches.htm).

Required

a. What is each company’s major product line? (This information should be near the beginning of the 10-K.) For each company, do you expect sales to be fairly constant throughout the year or to exhibit seasonal cycles? Why?

b. Find (by scrolling through) the “annual calculations data” that both companies included at the end of their Notes to Financial Statements. Based on these data, calculate:

1. percentage change in net sales, cost of goods sold, gross profit, and net income for each quarter 2. the gross profit percentage for each quarter 3. the net income percentage for each quarter

c. Does your response in part a match the sales pattern you observed in part b?

If not, why not?