1. Based on Item 1 of the 10-K's, describe and compare what tangible and intangible assets each company are important for the company in order to reach its customers and execute its business strategy effectively. By tangible assets, I mean assets that appear on the companies' balance sheets; by intangible assets, I mean assets that do not appear on the companies' balance sheets but might provide the companies with competitive advantages. (Note: Do not evaluate Blue Nile Inc.'s and Tiffany & Co.'s marketing and business strategies. Take those strategies as given. Comment on what assets each company needs to execute its marketing and business strategy well.)

2. Compare the companies' balance sheets and income statements.

a. Since the companies are different sizes, for each company, tabulate the consolidated balance sheet as a percent of total assets each year from fiscal 2010 to fiscal 2015. Also tabulate gross margin (gross profit as a percent of revenue), net margin (net income as a percent of revenue), and asset turnover (revenue as a percent of total assets) each year for each year from fiscal 2010 to fiscal 2015.

b. Which liabilities are relatively large for Blue Nile Inc. and liabilities are relatively large for Tiffany & Co.? Also compare shareholders' equity as a percent of total assets across the two companies.

c. Compare the gross margins, net margin, and asset turnover ratios.

3. Describe the companies' relationships with suppliers. Discuss any notable terms on the firms' accounts payable.

4. Describe anything notable about the companies' merchandise credits and deferred revenue, if the company has any.

5. Compare the principal amounts (as a percent of total assets) and maturities on their debt. Describe any notable contract terms, such as covenants, call provisions, collateral, etc. Discuss if the company issued any new debt and how the proceeds were used.

6. Compare the amounts (as a percent of total assets) and lengths of their lease and deferred rent obligations. Describe any notable contract terms, such as lease incentives or renewal rights. Capitalize the lease obligations: assume that each company's leases are 10-year amortizing debt with a 5% discount rate and annual payments. How much additional debt would appear on each company's balance sheet? Assume that the corresponding right-of-use asset equals the additional debt. By what percentage would total assets increase and by what percentage would the ratio of debt to total assets increase?

7. Compare how much each company paid in dividends. Also describe how much stock each company repurchased in dollars and in shares. If you owned 1000 shares of Tiffany & Co. on January 31, 2011 and held it through January 31, 2016, how much would you have received in dividends? What percentage of the shares outstanding would you have owned on January 31, 2011 and approximately what percentage of the shares outstanding would you have owned on January 31, 2016? If you owned 1000 shares of Blue Nile on January 2, 2011 and held it through January 3, 2016, how much would you have received in dividends? What percentage of the shares outstanding would you have owned on January 2, 2011 and approximately what percentage of the shares outstanding would you have owned on January 3, 2016?

8. After compiling and presenting these data, explain the "fit."

a. How does Tiffany & Co.'s structure of liabilities and shareholders' equity fit and complement its tangible and intangible assets?

b. How does Blue Nile Inc.'s structure of liabilities and shareholders' equity fit and complement its tangible and intangible assets?

c. Why would the structure of liabilities and shareholders' equity of each company not be appropriate for the other company? (Note: Do not evaluate Blue Nile Inc.'s and Tiffany & Co.'s marketing and business strategies. Focus on how the structure of their liabilities and shareholders' equity fit and complement the marketing and business strategies.)

Tiffany & Co.'s hyperlink 10-k Year 2011https://www.sec.gov/Archives/edgar/data/98246/000119312512136912/d285717d10k.htm

Tiffany & Co.'s hyperlink 10-k Year 2013https://www.sec.gov/Archives/edgar/data/98246/000009824614000096/tif-2014131x10k.htm#sDC16316C8E36DDADFCE636A47609714F

Tiffany & Co.'s hyperlink 10-k Year 2015https://www.sec.gov/Archives/edgar/data/98246/000009824616000211/tif-2016131x10k.htm

Blue Nile Inc.'s 10-K's for 2011https://www.sec.gov/Archives/edgar/data/1091171/000119312512081934/d263699d10k.htm

Blue Nile Inc.'s 10-K's for 2013https://www.sec.gov/Archives/edgar/data/1091171/000109117114000014/nile-12292013x10k.htm

Blue Nile Inc.'s 10-K's for 2015https://www.sec.gov/Archives/edgar/data/1091171/000109117116000189/nile-1032016x10k.htm

THE 10k's are provided above via the hyperlink!