5. What are the net sales or net revenues, cost of sales or cost of goods sold, and net (loss) earnings of the two companies using the audited financial statements available in Item 8 in the table of contents for The GAP, Inc. and The TJX Companies, Inc.?

	Net Sales or Net Revenues	Cost of Sales or Cost of Goods Sold	Net (Loss) Earnings	Financial Statement Name
GAP Inc. Numbers are stated in: Millions
TJX Inc. Numbers are stated in: Millions

Compare and Contrast the size of net sales or net revenues, cost of sales or cost of goods sold, and net (loss) earnings of the two companies. You also need to discuss the different size of the companies in comparison to each other.

6. Compute the average assets, return on assets (answer should be shown in percentage terms), and the components of the return on assets (profit margin-should be shown in percentage terms and asset turnover-not shown in percentage terms) for the fiscal year we are researching for this case of the 10-K using the table provided below.

You must show calculations to earn credit.	Average assets-Use the total assets from the previous year plus the total assets for the current year and divide by 2. Make sure you identify in thousands or millions.	Return on Assets=Net Income(Loss)/Average Assets In percentage terms to 2 decimal pts.	Profit Margin=Net Income(Loss)/Net sales In percentage terms to 2 decimal pts.	Asset Turnover=net sales/average assets. Show to 2 decimal pts.
GAP Inc.
TJX Inc.

Compare and Contrast and comment upon the findings. Your comments should include how the profit margin and asset turnover are affecting the return on assets.

7. Analyze the Consolidated Statements of Cash Flows for each company for the fiscal year we are researching for this case, by answering the following questions by entering the information into the table provided below:

	GAP Inc. Numbers are stated in: Millions	TJX Inc. Numbers are stated in: Millions
a. What was the dollar amount of the companies cash flow from operations?
b. Is operating cash flows smaller or larger than net income?
c. Determine the dollar amount and direction (cash source-positive or use-negative) of cash flows from investing activities.
d. Determine the dollar amount and direction (cash source-positive or use-negative) of cash flows from financing activities.
e. Did the company use cash to purchase property and/or equipment (capital expenditures) during the year using cash? Which section of the statements of cash flows did you find this information and how much did they buy using cash?
f. Identify all payments of cash related to debt. Which section of the statements of cash flows did you find this information or look for it if there was not reduction and how much did they pay cash?
g. What was the net increase (decrease) in cash or cash equivalents for the year?
h. Comment on each companys cash position including two items that you think are important to monitor that were on the Statement of Cash Flows and explain why you picked these items.