Use the 10-K Document from the SEC EDGAR database for each company to answer the following questions for each company. You can use direct references from the reports.Do not use the interactive Data file to answer the Financial Analysis. The author of the text uses the reference of footnotes to the financial statements.Many companies use the terminology notes to the financial statement, which is a synonymous term to footnotes to the financial statements.It is important for you to understand that the notes to the financial statements are an integral part of the audited financial statements.Do not ignore the notes to the financial statements in your analysis.

The GAP, Inc. (GPS) for year ended January 30, 2021 Direct link to 10-Khttps://www.sec.gov/ix?doc=/Archives/edgar/data/39911/000003991121000021/gps-20210130.htm

The TJX Companies, Inc. (TJX) for year ended January 30, 2021 Direct link to 10-Khttps://www.sec.gov/ix?doc=/Archives/edgar/data/109198/000010919821000006/tjx-20210130.htm

Requirements:The questions are in bolded black font.Please respond below each question.

1.Examine revenue and related accounts.Revenue is the largest item on the income statement, so we need to assess it on a quantitative and qualitative basis.

a. Read the management's discussion and analysis (MD&A) section of the 10-Ks, which is found in Item 7 of the table of contents.Explain how the companies' senior managers explain net sales or revenue in the most recent fiscal year.Provide the page number(s) you are using from the 10-K as your reference to this question.Also, discuss at least two other items of interest discussed in the MD&A.

b. Find the footnote or notes to the financial statements on sales revenue recognition and gift card revenue recognition policy if applicable.Provide the page number of the note for each company and how the company recognizes revenue.Also, in your response compare the revenue recognition to each other.Remember that the notes to the financial statements are an integral part of the financial statements, so are part of Item 8 and follow the audited financial statements.

c. Find the footnote or notes to the financial statements on the operations of the business and segment information.Provide a summary of what the company considers their business and segments. Include a discussion of why segment information is important information. Provide the page number you found this information.Remember that the notes to the financial statements are an integral part of the financial statements, so are part of Item 8 and follow the audited financial statements.

2.Find the GPS and TJX credit ratings for long-term debt using the following resources:Moody's and Standard and Poor's.

By using the following websites:

https://www.moodys.com/registerinfo.aspx?from=Nav_Reg

https://www.standardandpoors.com/en_US/web/guest/register

a. What are the credit ratings for both companies from each of these agencies in reference to long-term rating?Provide the date of the rating, too.For Standard and Poor's Global use the local currency long term for the most current related research and credit information.

Moody's Rating and Date

Standard and Poor's Global Rating and Date

GPS

TJX

b. Explain what the ratings mean based on each agencies credit rating.Based on the ratings which company would you invest in the company's long term debt issuance?Why?

3.Analyze the inventory account and answer the following questions using the financial statements and notes to the financial statements:

a. Which financial statement shows merchandise inventories?What subsection of the statement does this account appear?What has been the dollar change from the past year to current year for each company?Make sure you identify the dollar amount change and if it is an increase or decrease.Make sure you identify in millions or thousands.

Which financial statement shows merchandise inventories?

What subsection of the statement does this account appear?

What has been the dollar change from the past year to current year for each company?Make sure you identify the dollar amount change and if it is an increase or decrease.

Make sure you identify in millions or thousands.

GPS

TJX

b. Using the footnotes or notes to the financial statements identify how the company is costing inventory and the inventory costing method each company is primarily using.What is included in the inventory cost?Provide the page number of the note you are referencing.

c. Compute the average day's inventory outstanding for the current and past year for each company and show your calculations. Review page 6-13, which shows the formula as (365 times Average Inventory)/ Cost of Goods Sold.To determine the average inventory use the current year and past year inventory divided by 2, since the ending inventory of one year is the beginning inventory of the next year.Cost of Goods Sold is the same thing as Cost of Merchandise Sold.Round to the nearest day.You can find this information on the current 10-K except for the following information for 2019 Inventory for GPS $2,131 million and TJX $4,579,033 thousand. Comment on your results including a comparison of the two companies.

Roundto the nearest day

Current year

Past year

GPS

TJX

Comments:

d. Does the company face any inventory related risk? You need to use the 10-K Part 1A Risk Factors for both companies and find at least one risk factor that relates to inventory for each company.Comment on the risk factor you picked for each company.Explain why you picked this risk factor for each company. Provide the page number that you are referencing in this question.

e. Compute Days Payable Outstanding (DPO) for the current and past year for each company and show your calculations.Using the formula as 365 times Average Accounts Payable/Cost of Goods Sold.Cost of Goods Sold is the same thing as Cost of Merchandise Sold.Round to the nearest day.You can find this information on the current 10-K except for the following information for 2019 Accounts Payable for GPS $1,126 million and TJX $2,644,143 thousand. Comment on your results including a comparison of the two companies.

Round to the nearest day.

Current

Past year

GPS

TJX

Comment:

4.Analyze the net fixed assets (PPE-Property, Plant, and Equipment)a company may not use the exact wording, but please find the related account and answer the following questions:

a. Provide the percentage Property and Equipment, net as a percentage of total assets in the current year from the vertical analysis in Part two.What was the dollar change difference from the previous year for Property and equipment, net?Which financial statement did you look at to find the fixed assets?Discuss the two companies' percentages and dollar change in PPE from last year.

Property and Equipment, net as a percentage of total assets

What was the dollar change difference from the previous year for Property and equipment, net?

Which financial statement did you look at to find the fixed assets?

GPS

TJX

Comment:

b. Using the notes to the financial statements, answer the following questions for each company and provide the page number of your reference.What exactly are included in the companies' property and equipment as listed in the notes to the financial statements? What depreciation method are they using for financial reporting?

c. Are any long-lived assets impaired per the notes to the financial statements for each of the companies?Provide how each company determines impairment of long-lived asset per their notes.Is the impairment charge significant?Provide the page number of the note you are using as a reference.

d. Did the company buy any fixed assets or capital expenditures during the year using cash?Provide the name of the financial statement you used to determine if the company bought fixed assets for cash, provide the amount purchased in current year, and the section of the financial statement you found this information in along with the label used to show that cash was paid for fixed assets?Companies use different labels when they are purchasing fixed assets, so make sure you do not overlook this cash purchase, which might be worded differently.

e. Compute the PPE turnover (sales/Average PPE Assets, net) for the current and past year for both companies? Show your calculations and show two decimal points.Companies might use different account titles, so you need to be review and make sure you pick the like-kind account.You can find this information on the current 10-K except for the following information for 2019 Net Property and Equipment for GPS $2,912 million and TJX $5,255,208 thousand. You need to show your calculation .Comment on your results.I am looking for more than a one-sentence comment that I can see from the numbers given.

Show your calculations and show 2 decimal points.

Current

Past

GPS

TJX

Comments:

5.Analyze the company's dividend payment to shareholders.Review EPS and review the trend.

a. Provide the financial statement that shows the amount of cash dividends paid in the current year and the section name that dividends paid shows on the statement if applicable.What was the total amount of the dividends paid?Comment on why a company will pay a dividend or not and discuss the trend of dividends being paid out over the current and past years presented in the financial statement for each of these companies.

In Thousands

Name the financial statement that list out dividends paid if applicable and the section name that dividends paid shows on the statement if applicable.

Amount of Dividends paid in dollar amount

GPS

TJX

Comment on why a company will pay a dividend or not and discuss the trend of dividends being paid out over the current and past years presented in the financial statement for each of these companies.

b. Which statement can you find the basic and diluted earnings per share (EPS) attributable to the continued operations of the shareholders of the company? What is the basic EPS for the current year?What is the diluted EPS for the current year? Comment on the trend of EPS over the current and past two years and how diluted EPS has been impacted for each company.

Name the financial statement that Shows EPS

Basic EPS

Diluted EPS

GPS

TJX

Comment on the trend of EPS over the current and past two years and how diluted EPS has been impacted for each company.

of the companies.

Direct URL address of 10-K report at the SEC EDGAR website

The GAP, Inc.fiscal year ending January 30, 2021

https://www.sec.gov/ix?doc=/Archives/edgar/data/39911/000003991121000021/gps-20210130.htm

The TJX Companies, Inc. fiscal year ending January 30, 2021

https://www.sec.gov/ix?doc=/Archives/edgar/data/109198/000010919821000006/tjx-20210130.htm