Complete the the questions at the bottom of the diagram.
GAP Inc.	Dollar amounts in Millions $		Percentages			TJX Companies Inc.	Dollar amounts in Millions $		Percentages
Common-Size Balance Sheet	Jan. 28, 2023	Jan. 29, 2022	Jan. 28, 2023	Jan. 29, 2022		Common-Size Balance Sheet	Jan. 28, 2023	Jan. 29, 2022	Jan. 28, 2023	Jan. 29, 2022
Current assets:						Current assets:
Cash and cash equivalents	$ 1,215	$ 877	10.67%	6.87%		Cash and cash equivalents	$ 5,477	$ 6,227	19.32%	21.88%
Merchandise inventory	2,389	3,018	20.98%	23.65%		Accounts receivable, net	563	518	1.99%	1.82%
Other current assets	1,013	1,270	8.90%	9.95%		Merchandise inventories	5,819	5,962	20.53%	20.95%
Total current assets	4,617	5,165	40.55%	40.47%		Prepaid expenses and other current assets	478	437	1.69%	1.54%
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	4,837	5,071	42.48%	39.74%		Federal, state and foreign income taxes recoverable	119	115	0.42%	0.40%
Property and equipment, net of accumulated depreciation	2,688	3,037	23.61%	23.80%		Total current assets	12,456	13,259	43.94%	46.59%
Operating lease assets	3,173	3,675	27.87%	28.80%		Net property at cost	5,783	5,271	20.40%	18.52%
Other long-term assets	908	884	7.97%	6.93%		Non-current deferred income taxes, net	158	185	0.56%	0.65%
Total assets	$ 11,386	$ 12,761	100.00%	100.00%		Operating lease right of use assets	9,086	8,854	32.05%	31.11%
Current liabilities:						Goodwill	97	97	0.34%	0.34%
Accounts payable	1,320	1,951	11.59%	15.29%		Other assets	769	795	2.71%	2.79%
Accrued expenses and other current liabilities	1,219	1,367	10.71%	10.71%		Total assets	$ 28,349	$ 28,461	100.00%	100.00%
Current portion of operating lease liabilities	667	734	5.86%	5.75%		Current liabilities:
Income taxes payable	50	25	0.44%	0.20%		Accounts payable	3,794	4,465	13.38%	15.69%
Total current liabilities	3,256	4,077	28.60%	31.95%		Accrued expenses and other current liabilities	4,346	4,245	15.33%	14.92%
Long-term liabilities:						Current portion of operating lease liabilities	1,610	1,577	5.68%	5.54%
Line of Credit Facility, Amount Outstanding	350	0	3.07%	0.00%		Current portion of long-term debt	500	0	1.76%	0.00%
Long-term debt	1,486	1,484	13.05%	11.63%		Federal, state and foreign income taxes payable	55	181	0.19%	0.64%
Long-term operating lease liabilities	3,517	4,033	30.89%	31.60%		Total current liabilities	10,305	10,468	36.35%	36.78%
Other long-term liabilities	544	445	4.78%	3.49%		Long-term liabilities:
Total long-term liabilities	5,897	5,962	51.79%	46.72%		Other long-term liabilities	919	1,015	3.24%	3.57%
Stockholders' equity:						Non-current deferred income taxes, net	127	44	0.45%	0.15%
Common stock $0.05 par value, Authorized 2,300 shares for all periods presented	18	19	0.16%	0.15%		Long-term operating lease liabilities	7,775	7,576	27.43%	26.62%
Additional Paid in Capital	27	43	0.24%	0.34%		Long-term debt	2,859	3,355	10.09%	11.79%
Retained earnings	2,140	2,622	18.80%	20.55%		Commitments and contingencies (See Note N)			0.00%	0.00%
Accumulated other comprehensive income	48	38	0.42%	0.30%		Total long-term liabilities	11,680	11,990	41.20%	42.13%
Total stockholders' equity	2,233	2,722	19.61%	21.33%		Shareholders equity
Total liabilities and stockholders' equity	$ 11,386	$ 12,761	100.00%	100.00%		Common stock, authorized 1,800,000,000 shares, par value $1, issued and outstanding 1,155,437,908 and 1,181,188,731 shares, respectively	1,155	1,181	4.07%	4.15%
						Additional paid-in capital	0	0	0.00%	0.00%
						Accumulated other comprehensive (loss) income	(606)	(687)	-2.14%	-2.41%
						Retained earnings	5,815	5,509	20.51%	19.36%
						Total shareholders equity	6,364	6,003	22.45%	21.09%
						Total liabilities and shareholders equity	$ 28,349	$ 28,461	100.00%	100.00%

a. Compare the common size balance sheet statements of each company. Explain and identify two major differences over time and/or between the companies using the common-size balance sheet statement analyses. You need to be provide at least two common-size percentages for each company in your comparison comments.

b. Which company is more profitable? Discuss specifically which accounts impacted profitability. Provide at least two common-size percentages for each company in your comparison comments.

Compare the percentage of profit margin ratio in your ratio analysis in #3 over the past 2 years. Have there been changes in this ratio from the past year?

c. Explain how the Return on Equity (ROE) has changed over time for each company? Explain how the profit margin, asset turnover, and financial leverage impacted ROE for each company. Provide the amount of the ratios for each of the companies in your explanation. Include a discussion of changes in profit margin, asset turnover, and financial leverage. Explain what each ratio is measuring. You need to identify the specific company ratios you computed in #3.

d. Explain what liquidity means.

Which company is more liquid? Why? You must discuss the relevant ratio(s) that support your answer to this question from the work you completed in #3.

e. Explain what solvency means.

Which company is more solvent? Why? You must discuss the relevant ratio(s) that support your answer to this question from the work you completed in #3.