Calculation of Gross Profit Ratio for Wal-Mart and Target You are considering an investment in the common stock of Wal-Mart. The following information is from the consolidated statements of income of Wal-Mart Stores, Inc. and Subsidiaries for the years ended January 31, 2014 and 2013 and the consolidated statements of operations for its competitor Target Corporation for the years ended February 1, 2014, and February 2, 2013 (included in the companies' Form 10-Ks, amounts in millions of dollars): Wal-Mart (in millions) Sales* Cost of sales Year Ended January 31, 2014 $473,076 358,069 Year Ended January 31, 2013 $465,604 352,297 Target Year Ended Year Ended February 1, 2014 February 2, 2013 $72,596 $71,960 51,160 50,568 *Described as net sales by Wal-Mart. Required: 1. Calculate the gross profit ratios for Wal-Mart and Target for 2014 and 2013. Enter the amounts as a percent, rounded to one decimal place. Wal-Mart's 2014 gross profit ratio: % Wal-Mart's 2013 gross profit ratio: % Target's 2014 gross profit ratio: % Target's 2013 gross profit ratio: % 2. Which company appears to be performing better? 3. What factors might cause difference in the gross profit of two companies in operating in the same industry