TJX Companies Inc. Common Size Income Statement 12 Months Ended-in thousands $ Percentages Jan. 30, 2021 Feb. 01, 2020 Feb. 02, 2019 Jan. 30, 2021 Feb. 01, 2020 Feb. 02, 2019 ***You must use cell references to Net sales $ 32, 136,962 $ 41,716,977 $ 38,972,934 Cost of sales, including buying and occupancy costs 24,533,815 29,845,780 27,831, 177 Gross Profit 7,603, 147 11,871, 197 11, 141,757 Selling, general and administrative expenses 7,020,917 7,454,988 6,923,564 Operating Income 582,230 4,416,209 4,218, 193 Loss on early extinguishment of debt 312,233 Interest expense, net 180,734 10,026 8,860 Pension settlement charge 0 36, 122 Income before income taxes 89,263 4,406, 183 4, 173,211 Benefit (provision) for income taxes 1,207 (1,133,990 (1, 113,413) Net income $ 90,470 $ 3,272, 193 6 3,059,798 a. Review the vertical analyses and provide two major differences over the three years and discuss patterns that emerge? You should be focusing on specific accounts and not subtotals or totals. b. What are the company's two largest major expenses for the current year? c. Discuss the fluctuations in interest expense and income taxes. What are the cause of these changes? You need to provide specific causes for the applicable company that relates specifically to the interest expense and income taxes. d. Was the company more or less profitable when compared to the prior year? Using the specific income statement ratios or amounts, explain what caused the change in income from the prior year.A B C D E F G H Dollar amounts in Thousands $ Percentages Jan. 30, Feb. 01, Common-Size Balance Sheet Jan. 30, 2021 Feb. 01, 2020 2021 2020 3 Current assets: 4 Cash and cash equivalents $ 10,469,570 $ 3,216,752 ##*You must use cell references to earn credit Accounts receivable, net 461,139 386,261 6 Merchandise inventories 4,337,389 4,872,592 Prepaid expenses and other current assets 434,977 368,048 8 Federal, state and foreign income taxes recoverable 36,262 46,969 9 Total current assets 15,739,337 8,890,622 10 Net property at cost 5,036,096 5,325,048 1 Non-current deferred income taxes, net 127,191 12,132 12 Operating lease right of use assets 8,989,998 9,060,332 13 Goodwill 98,998 95,546 14 Other assets 821,935 761,323 15 Total assets 30,813,555 24,145,003 16 Current liabilities: 17 Accounts payable 4,823,397 2,672,557 8 Accrued expenses and other current liabilities 3,471,459 3,041,774 19 Current portion of operating lease liabilities 1,677,605 1,411,216 20 Current portion of long-term debt 749,684 0 21 Federal, state and foreign income taxes payable 81,523 24,700 22 Total current liabilities 10,803,668 7,150,247 23 Long-term liabilities: 24 Other long-term liabilities 1,063,902 851,116 25 Non-current deferred income taxes, net 37,164 142,170 26 Long-term operating lease liabilities 7,743,216 7,816,633 27 Long-term debt 5,332,921 2,236,625 28 Total long-term liabilities 14,177,203 11,046,544SHAREHOLDERS' EQUITY Common stock, authorized 1,800,000,000 shares, par value $1, issued and outstanding 1,204,698 1,199,100 1,204,698,124 and 1, 199,099,768, respectively Additional paid-in capital 260,515 0 Accumulated other comprehensive (loss) income (606,071) (673,171) Retained earnings 4,973,542 5,422,283 Total shareholders' equity 5,832,684 5,948,212 Total liabilities and stockholders' equity $ 30,813,555 $ 24,145,003
