Comparing Income Statements and Balance Sheets of CompetitorsFollowing 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 (ex: 0.2345 = 23.5%).Income Statement($ millions)ANF TJX Sales$4,680 $21,058 Cost of goods sold1,599Answer 16,021Answer Gross profit3,081Answer 5,037Answer Total expenses2,435Answer 4,003Answer Net income$ 646Answer $ 1,034Answer (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$1,010Answer $3,929Answer Long-term assets1,627Answer 2,608Answer Total assets$2,637 $6,537 Current liabilities$ 513Answer $2,698Answer Long-term liabilities406Answer 1,708Answer Total liabilities919Answer 4,406Answer Stockholders' equity1,718Answer 2,131Answer Total liabilities and equity$2,637 $6,537

comparison using Percentage of sale / Percentage of Total Asset is an analysis in which each line…

Answered: Comparing Income Statements and Balance…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter3: The Adjusting Process

Section: Chapter Questions

Problem 6MAD

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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 (ex: 0.2345 = 23.5%).

Income Statement
($ millions)	ANF		TJX
Sales	$4,680		$21,058
Cost of goods sold	1,599	Answer	16,021	Answer
Gross profit	3,081	Answer	5,037	Answer
Total expenses	2,435	Answer	4,003	Answer
Net income	$ 646	Answer	$ 1,034	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	$1,010	Answer	$3,929	Answer
Long-term assets	1,627	Answer	2,608	Answer
Total assets	$2,637		$6,537
Current liabilities	$ 513	Answer	$2,698	Answer
Long-term liabilities	406	Answer	1,708	Answer
Total liabilities	919	Answer	4,406	Answer
Stockholders' equity	1,718	Answer	2,131	Answer
Total liabilities and equity	$2,637		$6,537

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