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please i need the right responses. thank you Comparing Income Statements and Balance Sheets of Competitors Following are selected income statement and balance sheet data
please i need the right responses. thank you
Comparing Income Statements and Balance Sheets of Competitors 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 = 23.596). Income Statement ($ millions) ANF TJX Sales $3.750 $18.647 Cost of goods sold 1,239 96 14.082 % Gross profit 2.511 4.565 Total expenses 2,035 % 3.793 96 Net income $ 476 % $ 772 % 96 90 (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 ($ millions) ANF TJX Current assets $1,140 % 53,992 $ 96 Long-term assets 1,427 % 2.608 Total assets $2.567 $6,600 Current liabilities $ 543 % 52,761 Long-term liabilities 406 % 1.708 % Total liabilities 949 % 4.469 % Stockholders' equity 1,618 % 2.131 % Total liabilities and equity $2.567 S6,600 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)? CANF 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? OANE 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. OTJX has a higher proportion of debt than does ANF, which implies that TJX is less risky than ANFStep by Step Solution
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