6) [30] Consider three firms in the diamond retailing industry: Zales, Tiffany, and Blue Nile. Zales sells merchandise primarily through stores but recently added an online channel: Tiffany also uses an online channel but most of its diamond and other high-end products are sold through stores; and Blue Nile's supply chain structure is geared toward a pure centralized e-business. Tiffany brand is very strong and well established; it is associated with glamour, trust, and customer service. Zales does not have the product variety and availability that Blue Nile provides, nor does it have the brand name advantage of Tiffany. Blue Nile operates primarily from one warehouse; Zales and Tiffany operate many stores, often in high-priced locations. From the following, calculate relevant financial performance metrics to highlight and demonstrate the differences in these firms' supply chain structures and approach. Zales Tiffany Blue Nile INCOME STATEMENT Revenues 1,888,016 3,794,249 400,035 Cost of sales 903,602 1,630,965 324,977 Gross margin 984,414 2,163,284 75,058 Selling, general and administrative 916,274 1.466,067 62,771 Depreciation and amortization 33,770 0 0 Other operating income 748 0 0 Operating earnings (loss) 35,118 697,217 12,287 Interest expense 23,182 59,069 0 Other income 0 5,428 679 Earnings (loss) before income taxes 11,936 643,576 12,966 Income tax expense 1.924 227.419 4,574 Net earnings (loss) 10,012 416,157 8,392 ASSETS Cash and cash equivalents 17,060 504,838 87,017 Accounts Receivable 52,620 173,998 3,485 Inventories 767,540 2,234,334 33,270 Other current assets 238,419 2.155 Total current assets 837,220 3,151,589 125,927 Property and equipment, net 108.875 818,838 7,876 Deferred tax asset 107,110 306,385 7,786 Other assets 134,050 354,038 4,312 Total assets 1,187,255 4,630,850 145,901 LIABILITIES Short-Term Loans 194,034 60 Accounts payable and accrued liabilities 220,558 295,424 128,648 Deferred revenue 82.110 66,647 246 Deferred tax liability 107,016 30,487 0 Total current liabilities 409,684 586,592 128,954 Long-term debt 410,050 765,238 625 Deferred revenue-long-term 109,135 96,724 2,188 Other liabilities 73,057 570978 25 Total Liabilities 1,001.926 2,019,532 131,792 Shareholder's Equity 185,329 2,611,318 14,109 0 0