Annalyze Financial ratios of retail industry

EXHIBIT 1 I Common-Sized Financial Da Retail Assets Cash & Short-Term Investments Receivables nventories Current Assets-Other Current Assets-Total Net Fixed Assets Assets-Other Intangibles Investments & Advances Assets-Total 4.6 7.0 1.4 17.0 24.5 16.7 1.5 2.5 32.0 43.1 57.0 52.2 2.0 4.0 9.0 0.6 0.0 0.0 100.0 100.0 Liabilities & Equity Accounts Payable Debt in Current Liabilities Income Taxes Payable Current Liabilities-Other Current Liabilities-Total LT Debt Deferred Taxes Liabilities-Other Liabilities-Total Stockholders' Equity Total Liabilities & Equity 18.0 17.9 6.5 1.6 1.1 0.9 10.1 5.1 35.7 25.5 19.7 28.0 nmf 3.0 2.5 3.2 58.9 59.7 41.1 40.3 100.0 100.0 Income/Expenses Sales-Net Cost of Goods Sold Gross Profit SG&A Expense Depreciation Earnings Before Interest &Taxes Nonoperating Income (Expense) 0.5 1.0 Interest Income (Expense) Special Items-Income (Expense) Pretax Income 100.0 100.0 75.3 67.1 24.7 32.9 17.9 22.5 1.5 2.7 5.3 7.7 0.8 0.0 0.0 (0.2) 5.6 6.5 2.0 2.4 Income Taxes-Total Net Income (Loss) 3.6 6.8 Retailing Companies M and N are two large discount retailers. One firm carries a wide variety for its low readth of merchandise, and volume-oriented strategy. Most of its stores are of nationally advertised general merchandise. The company is known leased and are located near the company's expanding network of distribution centers The company has begun to implement plans to expand both internationally and in large urban areas. The other firm is a rapidly growing chain of upscale discount stores. The company competes by attempting to match other discounters' prices on similar merchandise and by offering deep discounts on its differentiated items. Additionally, the company has partnerships with several leading designers. Recently, the firm has divested several rt Two Financia ondiscount department-store businesses. To support sales and earnings gr company offers credit to qualified customers