***You must use cell references to earn credit.
TJX Companies Inc. Common Size Income Statement	12 Months Ended-in millions $			Percentages
	Jan. 28, 2023	Jan. 29, 2022	Jan. 30, 2021	Jan. 28, 2023	Jan. 29, 2022	Jan. 30, 2021
Net sales	$ 49,936	$ 48,550	$ 32,137	100.00%	100.00%	100.00%
Cost of sales, including buying and occupancy costs	36,149	34,714	24,534	72.39%	71.50%	76.34%
Gross Profit	13,787	13,836	7,603	27.61%	28.50%	23.66%
Selling, general and administrative expenses	8,927	9,081	7,021	17.88%	18.70%	21.85%
Impairment on equity investment	218	0	0	0.44%	0.00%	0.00%
Operating Income	4,642	4,755	582	9.30%	9.79%	1.81%
Loss on early extinguishment of debt	0	242	312	0.00%	0.50%	0.97%
Interest expense, net	6	115	181	0.01%	0.24%	0.56%
Income before income taxes	4,636	4,398	89	9.28%	9.06%	0.28%
Provision (benefit) for income taxes	1,138	1,115	(1)	2.28%	2.30%	0.00%
Net income	$ 3,498	$ 3,283	$ 90	7.00%	6.76%	0.28%
a. Review the vertical analysis and provide the two largest expenses for the current year. Explain the trend over the three years for these two expenses and discuss how these costs affects net earnings.
b. Discuss the fluctuations in interest expense. What are reasons that could cause changes in interest expense? You need to provide specific causes for the applicable company that relates specifically to the interest expense.
c. Discuss the fluctuations in income tax expense. What are reasons that could cause changes in income tax expense? You need to provide specific causes for the applicable company that relates specifically to the income tax expense.
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.