Toys "R" Us, Inc. reported the following information (in U.S. millions) for the three fiscal years ended:

Instructions
(a) Calculate the gross profit margin and profit margin for Toys "R" Us for each of the three years.
(b) Recalculate profit margin using profit from operations as opposed to profit.
(c) Comment on whether the ratios improved or weakened over the three years.

Transcribed Image Text:

Jan. 28, 2012 Jan. 29, 2011 Jan. 30, 2010 Net sales Cost of goods sold Profit from operations Proiit $13,909 8,939 582 149 $13,864 8,939 646 1e8 $13,568 8,790 784 312