The following information was summarized from the consolidated statements of income of Wal-Mart Stores, Inc. and Subsidiaries for the years ended January 31, 2011 and 2010, and the consolidated statements of operations of Target Corporation for the years ended January 29, 2011, and January 30, 2010. (For each company, years are labeled as 2010 and 2009, respectively, although Wal-Mart labels these as the 2011 and 2010 fiscal years.)

Required
1. Calculate the gross profit ratios for Wal-Mart and Target for 2010 and 2009.
2. Which company appears to be performing better? What factors might cause the difference in the gross profit ratios of the two companies? What other information should you consider to determine how these companies are performing in this regard?

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2010 2009 in Millions Wal-Mart Target Sales Cost of Sales Sales Cost of Sales $418,952 $315,287 $405,132 $304,444 65,786 45,725 63,435 44,062