Kohl€™s Corporation operates family oriented department stores that sell moderately priced apparel and housewares. The company reported the following information (adapted) for the three years ending January 31, 2011:

Requirements
1. Compute profit margin for Kohl€™s for the years ended January 31, 2011, and January 31, 2010.
2. Compute asset turnover for Kohl€™s for the years ended January 31, 2011, and January 31, 2010.
3. Compute return on assets for Kohl€™s for the years ended January 31, 2011, and January 31, 2010.
4. What factors contributed to the change in return on assets during theyear?

Transcribed Image Text:

Kohl's Corporation Income Statement (Adapted) Jan 31, Jan 31, Jan 31 518,391 17,178 $16,389 4,519 2011 2010 2009 Net sales Cost of merchandise sold Selling, general and administrative Operating income Other revenue (expense) Income before tax Provision for income tax Net income alila 11,35910,680 10,334 S,118 1,914 (132) 1,782 (668) 4,786 1,712 (124) 1,588 (597) 1,536 1,425 (540) $ 1,114 IS 991 IS 885 Kohl's Corporation Partial Balance Sheet Jan 31,Jan 3 Jan 31, 2011 2010 2009 Total current assets Long-term investments Property, plant, and equipment Other assets Total assets 5,645 5,485 3,728 386 336 7,256 7,0186,984 318 $13,564$13,160 $11,363 277 321