29 SHAREHOLDERS' EQUITY Common stock, authorized 1,800,000,000 shares, par value $1, issued and 1,204,698 1, 199, 100 30 outstanding 1,204,698, 124 and 1, 199,099,768, respectively 31 Additional paid-in capital 260,515 0 32 Accumulated other comprehensive (loss) income (606,071) (673,171) 33 Retained earnings 4,973,542 5,422,283 34 Total shareholders' equity 5,832,684 5,948,212 35 Total liabilities and stockholders' equity $ 30,813,555 $ 24, 145,003Dollar amounts in Thousands $ Percentages TJX Common-Size Balance Sheet Jan. 30, 2021 Feb. 01, 2020 Jan. 30, Feb. 01, 2021 2020 Current assets: Cash and cash equivalents $ 10,469,570 $ 3,216,752 Accounts receivable, net 461,139 386,261 Merchandise inventories 4,337,389 4,872,592 Prepaid expenses and other current assets 434,977 368,048 Federal, state and foreign income taxes recoverable 36,262 46,969 Total current assets 15,739,337 8,890,622 Net property at cost 5,036,096 5,325,048 Non-current deferred income taxes, net 127, 191 12,132 Operating lease right of use assets 8,989,998 9,060,332 Goodwill 98,998 95,546 Other assets 821,935 761,323 Total assets 30,813,555 24, 145,003 Current liabilities: Accounts payable 4,823,397 2,672,557 Accrued expenses and other current liabilities 3,471,459 3,041,774 Current portion of operating lease liabilities 1,677,605 1,411,216 Current portion of long-term debt 749,684 0 Federal, state and foreign income taxes payable 81,523 24,700 Total current liabilities 10,803,668 7,150,247 Long-term liabilities: Other long-term liabilities 1,063,902 851,116 Non-current deferred income taxes, net 37,164 142,170 Long-term operating lease liabilities 7,743,216 7,816,633 Long-term debt 5,332,921 2,236,625 Total long-term liabilities 14,177,203 11,046,544A B C D E F G H K GAP Inc. TJX Companies Inc. in Millions In Thousands Guidance: Guidance for computing ratios in #3 1. Current ratio=Current Assets/Cu 2. Liabilities-to-equity= Total liabilitie 3. Times interest earned=Earnings Expense. ****Use Interest expen Please note the ratio computations in the nterest expense you will have to us comment box. This is the same information that be using operating income if given, was included in the part 2 instructions. Please income or expenses. Total Assets 2019 $8,049 Total Assets 2019 $14,326,029 let me know if you have questions. 4. Return on Equity=Net(loss) earr 5. Profit Margin=Net(loss) earnings 5. Asset Turnover=Sales/ Average *You must use cell references from the 7. Financial Leverage=Average Tot applicable worksheets to earn credit on B. Redo your Return on Equity calo Total Stockholders' equity 2019 $3,553 Total Stockholder's equity 2019 $5,048,606 your ratio analysis. Turnover*Financial Leverage. Hint: should agree with your #4 answer. ***Please note that you can use N formula. Jan. 30, 2021 Feb. 01, 2020 Jan. 30, 2021 Feb. 01, 2020 ***When calculating averages for s 1. Current ratio simple average which can be calcula 1. Current ratio calculating= ((current amount plus 2. Liabilities-to-equity 2. Liabilities-to-equity parenthesis if calculating simple aver 3. Times interest earned 3. Times interest earned then divide by 2 4. Return on Equity -shown as a * **You must use cell references by 4. Return on Equity -shown as a percentage 0 percentage contains the data to earn credit. 5. Profit Margin-Shown as a percentage 5. Profit Margin-Shown as a percentage worksheet to compute these ratios 6. Asset Turnover 6. Asset Turnover 3 7. Financial Leverage 7. Financial Leverage 8. Redo your Return on Equity calculation by 8. Redo your Return on Equity calculation by calculating Profit Margin*Asset calculating Profit Margin*Asset Turnover*Financial Leverage. Turnover*Financial Leverage.4. On the Analysis worksheet answerthe following questions in the text box I have provided using the results of ratio analysis and common-size vertical analyses to explain your answer. You grade is based on you applying financial analysis to the specific results you have determined throughout part 2 analysis. I am not looking for generic comments you have found on a website, but providing specific comments on your analysis you have performed in this part of the case analysis for both companies. a. Compare the common size balance sheet statements of each company. Explain and identify two major differencesover time and/or between the companies using the common-size balance sheet statementanalyses. You need to be provide at least two common-size percentages for each company in your companson comments. b. hich company is more profitable? Discuss specifically which accounts impacted profitability. Provide at least two common-size percentages for each company in your comparison comments. Which statementare you using to make yourassessment on profitability? Compare the percentage of profitmargin ratio in your ration analysis in #3 over the past 2 years. Have there been changes in this ratio from the past year? c. Explain how the Retum on Equity (ROE) has changed overtime for each company? Explain how the profit margin, asset tumover, and financial leverage impacted ROE for each company. Provide the amount of the ratios for each of the companies in your explanation. Include a discussion of changes in profit margin, assetturnover, and financial leverage. Explain what each ratiois measuring. You need to identify the specific company ratios you computed in #3. d. Explain what liquidity means. Which company is more liquid? Why? You mustdiscuss the relevant ratio(s) that supportyour answer to this question from the work you completed in #3. e. Explain what solvency means. Which company is more solvent? Why? You mustdiscuss the relevant ratio(s) that supportyouranswer to this question from the work you completed in #3