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), for the fiscal year ended February 2, 2013.

a. Express each income statement amount as a percentage of sales. Comment on any differences observed between these two companies, especially as they relate to their respective business models.

b. Express each balance sheet amount as a percentage of total assets. Comment on any differences observed between these two companies, especially as they relate to their respective business models.

c. Which company has a higher proportion of stockholders' equity (and a lower proportion of debt)? What do the ratios tell us about relative riskiness of the two companies?

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Income Statement ($ millions) Sales...... Cost of goods sold.. Gross profit.... Total expenses Net income......... ANF $4,511 1,694 2,817 2,580 .... $237 TJX $25,878 18,521 7,357 5,450 $ 1,907