Access the 2010 annual report for AnnTaylor Stores by clicking on the Investors and Annual Reports links at www.anninc.com.
Required
Conduct horizontal analysis of the company's net sales, cost of sales, and gross profit for the current year and vertical analysis for the same accounts for both the current and prior year. Round percentages to one decimal point (i.e., 10.1%). What conclusions can you draw about the company's ability to earn a profit from its sales?