Return to course Support Dashboard Antonio Martim 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 TIX 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: 0.2345-23.5ML Income Statement (5 millions) AND $4,600 TJK $21,050 Cot of goods sold 1.599 16.021 prot 2011 5037 2435 400) $1,034 (b) Express each balance sheet amount as a percentage of total assets Round your answers to one decimal place (ex: 0.2345-23581 Balance Sheet (3 million) ANY $1.010 85929 Long termas 2.400 Total s 1303 SLOW Long termas 406 W 1.700 Tour tablet 919 N 4,406 N213 36537 Totals and equity $2437 Which of the following statements about business models is most consistent with the computations for part (4) CANF's expenses as a percentage of sales are higher because it spends more on advertising than does TX CANF 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 CANF's profit is higher than 10's as a percentage of sales because its sales are higher than Trs CANPS gross profit is higher than TICs because its sales volume allows it to manufacture clothes. La lower per unit cost than can TPC 1827 12427 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 T CANF reports higher long-term assets as a percentage of total assets because it depreciates its long-term assets more slowly than does TIX CANE 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 TX CANF 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 CANF has a lower proportion of debt than does TPC which implies that ANF is less ricky than Tx OTP has a lower proportion of debt than does ANF, which implies that TIKis less my than ANF CAN has a higher proportion of debt than does TX, which implies that ANF is less risky than T Otp has a higher proportion of debt than does AN, which imples that TIX is less risky than ANF Check Next O Previous Save Answers