Table A: Income Statement for Costco and Macys

	Costco Income statement	Macy's Income statement
	2012	2012
Net sales	97,062	30,000
Membership fees	2,075
Total revenue	99,137	30,000
Cost of goods sold (COGS)	86,823	20,000
Gross Margin	12,314	10,000
Selling, general, and administrative (SG&A)	9,518	6,000
Operating Profit	2,796	4,000
Other income (expenses)	-95	40
interest Income	103	-600
Provision for income tax	-84	-900
Net profit	2,720	2,540
g=+Gross margin percent	10.5%	33.3%
SG&A percent of sales	9.8%	20.0%
operatring profit percent	2.9%	13.3%
Net profit percent	2.80%	8.5%

Table B: Balance sheet for Costco and Macys

	Costco	Macy's
Cash and cash equivalents	4,009	4000
short-term investments	1,604
Accounts receivable	965	400
Merchandise inventory	6,638	8000
other current assets	490	465
total current assets	13,706	12865
Property and equipment (net)	12,432	10000
Other assets	623	6000
Total assets	26,761	28865
current liabilities	12,050	8000
Long term debt	1,253	8000
other liabilities	885	3000
Total liabilities	14,188	19000
Stockholder equity	12,573	8000

1. Show how to calculate the Gross Margin for each company. Compare and discuss findings.

2. Show how to calculate the Operating Income Percentage for each company. Compare and discuss findings.

3. Show how to calculate Total Current Assets. Compare and discuss findings.