The following information was summarized from the consolidated statements of income of Wal-Mart Stores, Inc. and Subsidiaries for the years ended January 31, 2009 and 2008, and the consolidated statements of operations of Target Corporation for the years ended January 31, 2009, and February 2, 2008. (For each company, years are labeled as 2008 and 2007, respectively, although Wal-Mart labels these as the 2009 and 2008 fiscal years.)

Required
1. Calculate the gross profit ratios for Wal-Mart and Target for 2008 and 2007.
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 thisregard?

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2008 2007 (in Millions) Wal-Mart Target Described as net sales by Wal-Mart Sales Cost of Sales Sales Cost of Sales $401,244 $306,158 $286,350 $374,307 61,471 62,884 44.157 42,929