QUESTION 3 12 Months Ended 12 Months Ended 12 Months Ended Feb. 01, 2020 Feb. 02, 2019 Feb. 03, 2018 Excerpts from TJX Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands Income Statement [excerpts) Net sales Cost of sales, including buying and occupancy costs Selling, general and administrative expenses Net income $41,716,977 29,845,780 7,454,988 $3,272,193 $38,972,934 27,831,177 6,923,564 $3,059,798 $35,864,664 25,502,167 6,375,071 $2,607,948 Excerpts from TJX As of As of Consolidated Balance Sheets - USD ($) Feb. 01, 2020 Feb. 02, 2019 $ in Thousands Current assets: Cash and cash equivalents $3,216,752 $3,030,2291 Accounts receivable, net 386,261 346,2981 Merchandise inventories 4,872,592 4,579,033 Net property at cost 5,325,048 5,255,208 TOTAL ASSETS 24,145,003 14,326,029 Accounts payable 2,672,557 2,644,143 Total shareholders' equity 5,948,212 5,048,606 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $24,145,003 $14,326,029 Questions: a Using the income statement data for TJX industries, Calculate the compound Annual Growth Rate CAGR for Net Sales, from 2018 through 2020. Please explain what the CAGR means and how it should be interpreted. b. Calculate the Gross Margin as a percentage of Sales for TJX in the year 2020 and 2019. Interpret the difference in margin over time and what it tells investors about the business. (Recall that Gross Margin is amount left after adjusting for the cost of products sold) c. Use both the Income Statement and Balance Sheet to complete the table below by calculating the ratios that form an ROE decomposition for TJX, for the year 2020. Compare these to the same ratios in the year 2001. How have the ratios changed over time and what does that tell investors about the long term profitability of TJX? 2020 i. ji. Ratio ROE ROA Leverage Asset Turnover Margin 2001 41% 17.30% 2.37 3.71 4.67 iii. iv. v. Please provide all responses in the text box below and please copy and paste the appropriate part of the question and label your answers carefully, so I know which of the five questions above you are answering. QUESTION 3 12 Months Ended 12 Months Ended 12 Months Ended Feb. 01, 2020 Feb. 02, 2019 Feb. 03, 2018 Excerpts from TJX Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands Income Statement [excerpts) Net sales Cost of sales, including buying and occupancy costs Selling, general and administrative expenses Net income $41,716,977 29,845,780 7,454,988 $3,272,193 $38,972,934 27,831,177 6,923,564 $3,059,798 $35,864,664 25,502,167 6,375,071 $2,607,948 Excerpts from TJX As of As of Consolidated Balance Sheets - USD ($) Feb. 01, 2020 Feb. 02, 2019 $ in Thousands Current assets: Cash and cash equivalents $3,216,752 $3,030,2291 Accounts receivable, net 386,261 346,2981 Merchandise inventories 4,872,592 4,579,033 Net property at cost 5,325,048 5,255,208 TOTAL ASSETS 24,145,003 14,326,029 Accounts payable 2,672,557 2,644,143 Total shareholders' equity 5,948,212 5,048,606 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $24,145,003 $14,326,029 Questions: a Using the income statement data for TJX industries, Calculate the compound Annual Growth Rate CAGR for Net Sales, from 2018 through 2020. Please explain what the CAGR means and how it should be interpreted. b. Calculate the Gross Margin as a percentage of Sales for TJX in the year 2020 and 2019. Interpret the difference in margin over time and what it tells investors about the business. (Recall that Gross Margin is amount left after adjusting for the cost of products sold) c. Use both the Income Statement and Balance Sheet to complete the table below by calculating the ratios that form an ROE decomposition for TJX, for the year 2020. Compare these to the same ratios in the year 2001. How have the ratios changed over time and what does that tell investors about the long term profitability of TJX? 2020 i. ji. Ratio ROE ROA Leverage Asset Turnover Margin 2001 41% 17.30% 2.37 3.71 4.67 iii. iv. v. Please provide all responses in the text box below and please copy and paste the appropriate part of the question and label your answers carefully, so I know which of the five questions above you are answering