E2-40. Comparing Income Statements and Balance Sheets of Competitors Following are selected income statement and balance sheet data from two retailers. Abercrombie & Bitch (clothing retailer in the high-end market) and TJX Companies (clothing retailer in the value-priced market), for the fiscal year ended January 30, 2016. Income Statement ($ thousands) Sales........... Cost of goods sold........ Gross profit. . . . . . . . . . . ... Total expenses . . . . . . Net income. . . . . . . . ANF $3,518,680 1,361,137 2,157,543 2,121,967 $ 35,576 TJX $30,944,938 22,034,523 8,910,415 6,632,757 $ 2,277,658 ANF TJX Balance Sheet ($ thousands) Current assets ........................................... Long-term assets .............. Total assets................... Current liabilities. .......... Long-term liabilities ... Total liabilities .......... Stockholders' equity .......... Total liabilities and equity ........ $1,178,980 1,254,059 $2,433,039 $ 534,703 602,614 1,137,317 1.295,722 $2,433,039 $ 6,772,560 4 ,726,922 $11,499,482 $ 4,402,230 2,790,177 7,192,407 4,307,075 $11,499,482 a. Express each income statement amount as a percentage of sales. Comment on any differences observed between these two companies, especially as they relate to their respective business models. b. Express each balance sheet amount as a percentage of total assets. Comment on any differences ob- served between these two companies, especially as they relate to their respective business models. c. Which company has a lower proportion of debt? What do the ratios tell us about the relative riskiness of the two companies