Following are selected financial statement data from Abercrombie & Fitch (ANF-upscale clothing retailer) and TJX Companies (TJX-value-priced clothing retailer including TJ Maxx) -- both dated the end of January 2009 or 2008.

2008	TJX Companies Inc.	$6,600
2009	TJX Companies Inc.	6,178	$ 881	$19,000
2008	Abercrombie & Fitch	2,568
2009	Abercrombie & Fitch	2,848	272	3,540

(a) Compute the return on assets for both companies for the year ended January 2009. (Round your answers to one decimal place.)

TJX 2009 ROA =Answer%

ANF 2009 ROA =Answer%

(b) Disaggregate the ROAs for both companies into the profit margin and asset turnover.

TJX 2009 Profit Margin =Answer% (Round your answer to one decimal place.)

ANF 2009 Profit Margin =Answer% (Round your answer to one decimal place.)

TJX 2009 Asset Turnover =Answer(Round your answer to two decimal places.)

ANF 2009 Asset Turnover =Answer(Round your answer to two decimal places.)

(c) Which of the following is a likely interpretation of the results of your computations for parts a and b?

ANF turns its assets much faster than TJX and this is the primary reason for its higher return on assets. ANF is realizing a higher return on assets as a result of its lower investment in assets. ANF's higher profit margin results from premium prices on its clothing. TJX's value-pricing business model relies on higher turnover of clothing with lower margins. TJX's turnover rate is more than twice as much as ANF's, resulting in a ROA for TJX that is higher than ANF's. ANF's higher return on assets is the result of its greater level of sales.