Following are selected income statement and balance sheet data from two retailers: Abercrombie & Fitch (clothing retailer in the high-end market) and TJX Companies (clothing retailer in the value-priced market). (a) Express each income statement amount as a percentage of sales. Round your answers to one decimal place (ex: 0.2345 = 23.5%).

Comparing Income Statements and Balance Sheets of Competitors Following are selected income statement and balance sheet data from two retailers: Abercrombie & Fitch( retailer in the value-priced market). (a) Express each income statement amount as a percentage of sales. Round your answers to one decimal place (ex: 0.2345 23.5%). Income Statement (S millions) ANF Sales $3,750 $18,647 0 9% Cost of goods sold 14,082 1,239 0 9% Gross profit 2,511 0 % 4,565 0 % Total expenses 2,035 0 % 3,793 0 % $ 476 $ 772 Net income 09% 096 (b) Express each balance sheet amount as a percentage of total assets Round your answers to one decimal place (ex: 0.2345 = 23.5%) Balance Sheet (S millions) ANF Current assets $1,140 09% $3,992 0 % 1,427 Long-term assets 09% 2,608 09% $2,567 $6,600 Total assets Current liabilities $543 0% $2,761 0 % Long-term liabilities 1,708 406 0 % 0 % 0 9% Total liabilities 4,469 949 0 % Stockholders equity 1,618 2,131 0 % 09% Total liabilities and equity $2,567 $6,600 Total liabilities and equity $2,567 | 56,600 Which of the following statements about business models is most consistent with the computations for part (a)? OANF's expenses as a percentage of sales are higher because it spends more on advertising than does TJX OANF is a high-end retailer that is able to charge high prices for its products, but bears substantial operating costs to support its "shopping experience." OANF's profit is higher than TJX's as a percentage of sales because its sales are higher than TJX's. OANF's gross profit is higher than TJX's because its sales volume allows it to manufacture clothes at a lower per unit cost than can TJX. Which of the following statements about business models is most consistent with the computations for part (b)? OANF reports lower current assets as a percentage of total assets because it pays its vendors on a more timely basis than does TJX. OANF reports higher long-term assets as a percentage of total assets because it depreciates its long-term assets more slowly than does TJX. OANF reports lower current assets and higher long-term assets as a percentage of total assets because it carries less inventory and has a greater capital investment in its stores than does TJX. OANF reports lower current assets as a percentage of total assets because it is a smaller company and cannot afford the investment in inventory. (c) Which company has a lower proportion of debt? What do the ratios tell us about relative riskiness of the two companies? OANF has a lower proportion of debt than does TJX, which implies that ANF is less risky than TJx OTJX has a lower proportion of debt than does ANF, which implies that TJX is less risky than ANF. OANF has a higher proportion of debt than does TJX, which implies that ANF is less risky than TJX. OTIX hasa higher pronortion debt than does AN which imnlies that TIX is les risky than ANE