Question

Comparing Income Statements and Balance Sheets of Competitors
Following are selected income statement and balance sheet data from two retailers: Abercrombie & Fitch (clothing retailer in the high-end market) and TJX Companies (clothing retailer in the value-priced market).

(a) Express each income statement amount as a percentage of sales.

Round your answers to one decimal place (example: 0.2345 = 23.5%).

Income Statement
($ millions)	ANF			TJX
Sales	$3,469			$21,942
Cost of goods sold	1,257	Answer%		16,040	Answer%
Gross profit	2,212	Answer%		5,902	Answer%
Total expenses	2,062	Answer%		4,559	Answer%
Net income	$ 150	Answer%		$ 1,343	Answer%

(b) Express each balance sheet amount as a percentage of total assets.

Round your answers to one decimal place (ex: 0.2345 = 23.5%)

Balance Sheet
($ millions)	ANF			TJX
Current assets	$1,433	Answer%		$5,100	Answer%
Long-term assets	1,515	Answer%		2,872	Answer%
Total assets	$2,948			$7,972
Current liabilities	$ 559	Answer%		$3,133	Answer%
Long-term liabilities	498	Answer%		1,739	Answer%
Total liabilities	1,057	Answer%		4,872	Answer%
Stockholders' equity	1,891	Answer%		3,100	Answer%
Total liabilities and equity	$2,948			$7,972

answer all the parts that say answer please.

Answer 1

Income Statement
($ millions)	ANF				TJX
Sales	3469	3469/3469=	100.0%		21942	21942/21942=	100.0%
Cost of goods sold	1257	1257/3469=	36.2%		16040	16040/21942=	73.1%
Gross profit	2212	2212/3469=	63.8%		5902	5902/21942=	26.9%
Total expenses	2062	2062/3469=	59.4%		4559	4559/21942=	20.8%
Net income	150	150/3469=	4.3%		1343	1343/21942=	6.1%
(b) Each balance sheet amount as a percentage of total assets
Balance Sheet
($ millions)	ANF				TJX
Current assets	1433	1433/2948=	48.6%		5100	5100/7972=	64.0%
Long-term assets	1515	1515/2948=	51.4%		2872	2872/7972=	36.0%
Total assets	2948	2948/2948=	100.0%		7972	7972/7972=	100.0%
Current liabilities	559	559/2948=	19.0%		3133	3133/7972=	39.3%
Long-term liabilities	498	498/2948=	16.9%		1739	1739/7972=	21.8%
Total liabilities	1057	1057/2948=	35.9%		4872	4872/7972=	61.1%
Stockholders' equity	1891	1891/2948=	64.1%		3100	3100/7972=	38.9%
Total liabilities and equity	2948	2948/2948=	100.0%		7972	7972/7972=	100.0%