Income Statements January 31, 2004
	Wal-Mart	Kmart	Sears	Target
Sales	258,681,000	23,253,000	41,124,000	48,163,000
Cost of Sales	198,747,000	17,846,000	26,231,000	31,790,000
Gross_Profit	59,934,000	5,407,000	14,893,000	16,373,000
Administrative_Expenses	44,909,000	4,998,000	9,111,000	11,534,000
EBIT	15,025,000	409,000	5,782,000	4,839,000
Interest	996,000	162,000	1,025,000	559,000
Taxes (@ 35 %)	4,910,150	86,450	1,664,950	1,498,000
Net Income	9,118,850	160,550	3,092,050	2,782,000
Balance Sheets as at January 31, 2004
	Wal-Mart	Kmart	Sears	Target
Cash_and_cash_equivalents	5,199,000	2,088,000	9,057,000	816,000
Receivables	1,254,000	301,000	3,397,000	5,776,000
Inventory	26,612,000	3,238,000	5,335,000	5,373,000
Total_Current_Assets	33,065,000	5,627,000	17,789,000	11,965,000
Property,_Plant_&_Equip.	58,530,000	153,000	6,788,000	16,969,000
Other_Assets	6,079,000	120,000	908,000	1,495,000
Total_Assets	97,674,000	5,900,000	25,485,000	30,429,000
Accounts_Payable	31,051,000	1,772,000	7,582,000	7,448,000
Other_current_Liabilities	6,367,000	1,050,000	5,194,000	866,000
Total_current_liabilities	37,418,000	2,822,000	12,776,000	8,314,000
Long_term_Debt	20,099,000	2,297,000	4,718,000	10,217,000
Common_stock	431,000	208,000	823,000	96,000
Retained_Earnings	39,726,000	573,000	7,168,000	11,802,000
Total_Liabilities_&_Equity	97,674,000	5,900,000	25,485,000	30,429,000

Questions you should consider in reviewing the case:

3. What is the NPV of buying Sears?

5. How could we find the greatest underperforming area for any of the firms?