Using the following financial statements, calculate the following:
1. a. Calculate Return on Sales for 2019 and 2018.
b. Discuss why this ratio changed from 2018. Identify specific accounts that caused the change and note whether it was an increase or decrease in these accounts that caused the change.
2. a. Calculate Cash & Marketable Securities to Total Assets ratio for 2019 and 2018.
b. Discuss why this ratio changed from 2018. Identify specific accounts that caused the change and note whether it was an increase or decrease in these accounts that caused the change.
in millions, excepe per share daca February 3, 2019 January 28, 2018 | Increasedecres Increase decrease Amount Increase decrease %. 1,778$ 1,936 13,925 -1,817 -16 1,177 Assets Current assets: Cash and cash equivalents Receivables, net Merchandise inventories Other current assets Total current assets Net property and equipment Goodwill Other assets Total assets 890 252 3,595 1,952 12,748 638 18,933 22,075 2,275 1,246 44,529 18,529 22,375 2,252 -404 -50.54% -0.82% 9.23% 39.50% -2.13% 1.36% -1.01% -32.02% -1.18% 300 -23 847 -399 44,003s -526 Liabilities and Stockholders' Equity Current liabilities: Short-term debt s Accounts payable Accrued salaries and related expenses Sales taxes payable Deferred revenue Income taxes payable Current installments of long-term debt Other accrued expenses Total current liabilities 1,339 s 7,755 1,506 656 1,782 1,559 7,244 1,640 520 1,805 -220 511 -134 136 -23 -43 -146 - 14.11% 7.05% -8.17% 26.15% -1.27% -79.63% -12.15% 20.32% 3.22% 11 1,0561 2,6111 16,716 1,202 2,170 16,194 441 5221 2,540 Long-term debt, excluding current installments Deferred income taxes Other long-term liabilities Total liabilities 26,807 491 1.867 45,881 24,267 440 2.174 43,075 10.47% 11.59% -14.12% 6.51% -307 2,806 Common stock, par value S0.05, authorized: 10,000 shares; issued: 1,782 at February 3, 2019 and 1,780 shares at January 28, 2018; outstanding: 1,105 shares at February 3, 2019 and 1,158 shares at January 28, 2018 Paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, at cost, 677 shares at February 3, 2019 and 622 shares at January 28, 2018 Total stockholders' (deficit) equity Total liabilities and stockholders' equitys 89 10,578 46,423 -772 10,192 39,935 -566 386 6,488 -206 0.00% 3.79% 16.25% 36.40% -58,196 -1,878 44,003 . -48,196) 1,454 44,529 -10,000 -3,332 -526 20.75% -229.16% -1.18% in millions, except per share data Fiscal Fiscal Fiscal 2019 108,203 $ 71,043 37,160 2018 100,904 $ 66,548 34,356 2017 94,595 62,282 32,313 Increase/decrease Amount 7,299 4,495 2804 Increase/decrease % 7.23% 6.75% 8.16% 17,864 1,811 17,132 1,754 9.23% 3.26% Net sales Cost of sales Gross profit Operating expenses: Selling, general and administrative Depreciation and amortization Impairment loss Total operating expenses Operating income Interest and other income) expense: Interest and investment income Interest expense Other Interest and other, net Earnings before provision for income taxes Provision for income taxes Net earnings 19,513 1,870 247 21,630 15,530 1649 59 247 1,955 849 19,675 14,681 18,886 13.427 9.94% 5.78% -93 -36 -19 25.68% -0.57% 972 0 1,051 16 974 14556 3,435 11,121 $ -74 1,057 0 983 13698 5,068 8,630 S 936 12491 4,534 7,957| -9 858 -1,633 2491 -0.92% 6.26% -32.22% 28.86%
