1. Calculate the following for both Tiffany and TJX using data from the abbreviated income statements and balance sheets in Exhibit 1.
   1. Gross margin percentage
   2. SG&A expense percentage
   3. Operating profit margin percentage
   4. Net profit margin (after taxes) percentage
   5. Inventory turnover
   6. Asset turnover
   7. Return on Assets (ROA) percentage
2. Compare and contrast the calculated financial figures for Tiffany and TJX. Analyze and discuss why the percentages and ratios differ for the two retailers.
3. Analyze which retailer has the better overall financial performance.
4. Why is ROA a good measure of a retailers financial performance?

Tiffany (Year Ending 1/31/2012) Income Statement $3 642 937 51491783 TIX (Your Ending 1/28/2012) Income Statement $23 191 455 $16 854 249 $2 151154 $1442 720 $6 337 205 $3 090-44 $709 426 $2 447 062 Netsales Less: Cost of goods sold Gross margin Less: SC&A expenses Operating prot margin Less: Interest expense Other income Net income before taxes Less: Taxes Netincome after taxes $48578 $35 648 $0 $5099 $664 951 $2 411 414 $255 761 $439 150 Balance Sheet $915 324 $1496 090 Balence Sheet $1507112 $204 304 $2950 523 Cash $433 954 Accounts receivable $184 085 $2073 212 $198 424 $470 693 Inventory Other current asse's Total current assets Fixed assets Long-term assets Current liabilities Long-term liabilites Stockholders' equity $2 889 675 $757 174 $502 143 S626 677 $186 302 $2 348 905 $5 32 632 $2 706 377 $442 595 $3 063 423 $2008 892 $3 209 290 act