Module02 - UF-ACG- Assignment 33page 1 of 14Luther Setzer1...

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Unformatted text preview: UF-ACG-50651f1e86983aad9bde695c776d505008bf77aa9b72.xls Assignment 33page 1 of 14Luther Setzer1 NASA Pkwy E Stop NEM3, Kennedy Space Center, FL 32899(321) 544-7435Comparing TJX and Abercrombie & FitchFollowing are selected income statement and balance sheet data from two retailers:(clothing retailer in the value-priced market).Income Statement ($ millions)ANFTJXSales$2,021 $14,913 Cost of goods sold$680 33.6%$11,399 76.4%Gross profit$1,341 66.4%$3,514 23.6%Total expenses$1,125 55.7%$2,904 19.5%Net income$216 10.7%$610 4.1%Balance Sheets ($ millions)ANFTJXCurrent assets$672 48.4%$2,905 57.2%Long-term assets$715 51.6%$2,170 42.8%Total assets$1,387 $5,075 Current liabilities$429 30.9%$2,204 43.4%Long-term liabilities$288 20.8%$1,124 22.1%Total liabilities$717 51.7%$3,328 65.6%Stockholders' equity$670 48.3%$1,747 34.4%Total liabilities and equity$1,387 $5,075 a.Express each income statement account as a percentage of sales. Comment onany differences observed between these two companies, especially as theyrelate to their respective business models.b.Express each balance sheet account as a percentage of total assets. Commenton any differences observed between these two companies, especially as theyrelate to their respective business models.c.Which company has a higher proportion of stockholders' equity (and a lowerproportion of debt)? What do the ratios tell us about relative riskinessof the two companies?Abercrombie & Fitch(clothing retailer in the high-end market) and TJX CompaniesUF-ACG-50651f1e86983aad9bde695c776d505008bf77aa9b72.xls Assignment 35page 2 of 14Luther Setzer1 NASA Pkwy E Stop NEM3, Kennedy Space Center, FL 32899(321) 544-7435Comparing Income Statements and Balance Sheets of CompetitorsFollowing are selected income statement and balance sheet data for two communications companies:Income Statement ($ millions)ComcastVerizonSales$22,255 $75,112 Cost of goods sold$7,969 35.8%$25,469 33.9%Gross profit$14,286 64.2%$49,643 66.1%Total expenses$13,358 60.0%$42,246 56.2%Net income$928 4.2%$7,397 9.8%Balance Sheets ($ millions)ComcastVerizonCurrent assets$2,954 2.9%$16,448 9.8%Long-term assets$100,192 97.1%$151,682 90.2%Total assets$103,146 $168,130 Current liabilities$6,269 6.1%$25,063 14.9%Long-term liabilities$56,001 54.3%$76,633 45.6%Total liabilities$62,270 60.4%$101,696 60.5%Stockholders' equity$40,876 39.6%$66,434 39.5%Total liabilities and equity$103,146 $168,130 a.Express each income statement account as a percentage of sales. Comment onany differences observed between these two companies, especially as theyrelate to their respective business models.b.Express each balance sheet account as a percentage of total assets. Commenton any differences observed between these two companies, especially as theyrelate to their respective business models....
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This note was uploaded on 05/12/2010 for the course ACG 5065 taught by Professor Asare during the Spring '08 term at University of Florida.

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Module02 - UF-ACG- Assignment 33page 1 of 14Luther Setzer1...

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