Profitability analysis for two types of retailers. Information taken from recent annual reports of two retailers appears

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Profitability analysis for two types of retailers. Information taken from recent annual reports of two retailers appears as follows (amounts in thousands). One of these companies is Family Dollar Stores, a discount store chain, and the other is Ann Taylor Stores, a specialty retailer of apparel. The income tax rate is 35 percent. Indicate which of these companies is Family Dollar Stores and which is Ann Taylor Stores. Explain your reasoning using appropriate financial ratios.

Company A Company B Sales $1,587,708 $4,750,171 Interest Expense 6,665 —

Net Income 100,942 247,475 Average Total Assets 1,080,200 1,870,157

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