1. Compute the vertical analysis for HEB Income Statement: Twelve Months Ended (In millions) Jan. 29, 2016 Jan. 30, 2015 Jan. 31, 2014 Net sales. . . . .. $59,074 $56,223 $53,417 Cost of sales. . . . . . 38,504 36,665 34,941 Gross margin 20,570 19,558 18,476 Expenses Selling, general and administrative 14,115 13,281 12,865 Depreciation . . 1,484 1,485 1,462 Interest-net. 552 516 476 Total expenses . . . . 16,151 15,282 14,803 Pre-tax earnings. . 4,419 4,276 3,673 Income tax provision 1,873 1,578 1,387 Net earnings . . $ 2,546 $ 2,698 $ 2,286 2. Explain the relationship between net sales and cost of sales. What can you conclude? 3. Compute the horizontal analysis for Lowe's Balance Sheet LOWE'S COMPANIES INC. Consolidated Balance Sheets $ millions, except par value Jan. 29, 2016 Jan. 30, 2015 Current assets Cash and cash equivalents 105 465 Short-term investments .. 125 Merchandise inventory 9.458 B.911 Other current assets. . . . . . 391 349 Total current assets . . . . . . . . .. 10.561 0.851 Property, less accumulated depreciation. 19,577 20,034 Long-term investments . .. 222 354 Deferred income taxes- 241 133 Other assets. . 1.319 Total assets. . $31,206 $31,721 Current liabilities Short-term borrowings. . . . . . . . . . .- 43 Current maturities of long-term debt . 1,061 552 Accounts payable. . 5,633 5.124 Accrued compensation and employee benefits. 620 773 Deferred revenue . . . . 1,07B 979 Other current liabilities . . 1,857 1,920 Total current liabilities. . . . . .. 10,492 9.349 Long-term debt, excluding current maturities - 11,545 10,ADS Deferred revenue-extended protection plans 729 730 Other liabilities . . . . 646 869 Total liabilities . . . 23,612 21,753 Shareholders' equity Preferred stock-$5 par value, none issued . . . . .. . Common stock-$0.50 par value; shares issued and outstanding 910 at January 29, 2016 and 980 at January 30, 2015, respectively. 455 460 Capital in excess of par value . Retained earnings . . .. 7,593 9591 Accumulated other comprehensive loss . 394 103) Total shareholders' equity . . 7.654 9.960 Total liabilities and shareholders' equity. . .... $31,266 531,721 4. Explain the relationship between Property and long-term debt. What can you conclude