Question

Styles Consolidated Statements of 12 Months Ended Earnings (USD $) In Millions, except Per Share data, unless otherwise specified Income Statement (Abstract] NET SALES Cost of Sales Vertical Vertical Horizontal Feb. 01, 2015 Feb. 02, 2014 Analysis Analysis Analysis $83,176 54,222 $78,812 51,422 GROSS PROFIT Operating Expenses: Selling, General and Administrative Depreciation and Amortization Total Operating Expenses 28,954 27,390 16,834 1,651 16,597 1,627 18,485 18,224 OPERATING INCOME 10,469 9,166 Interest and Other (Income) Expense: Interest and Investment Income Interest Expense Other Interest and Other, net -337 -12 830 711 0 493 699 EARNINGS BEFORE PROVISION FOR INCOME TAXES 9,976 3,631 $6,345 8,467 Provision for Income Taxes 3,082 NET EARNINGS $5,385 Weighted Average Common Shares 1,338 $4.74 1,425 BASIC EARNINGS PER SHARE $3.78 Diluted Weighted Average Common Shares 1,346 1,434 $3.76 DILUTED EARNINGS PER SHARE $4.71 [1] Fiscal years ended FebruaryA 1, 2015 and FebruaryA 2, 2014 include 52A weeks. Fiscal year ended FebruaryA 3, 2013 includes 53 weeks.

Complete a vertical and horizontal analysis on both the income statement and balance sheet. use total assets on the balance sheet and net sales on the income statement for your vertical analysis.

Answer 1

Income Statement
	2/1/15	Verticle Analysis	2/1/14	Verticle Analysis	Horizonal analysis
NET SALES	$83,176	100.00%	$78,812	100.00%	5.54%
Cost of Sales	54,222	65.19%	51,422	65.25%	5.45%
GROSS PROFIT	28,954	34.81%	27,390	34.75%	5.71%
Operating Expenses:				0.00%
Selling, General and Administrative	16,834	20.24%	16,597	21.06%	1.43%
Depreciation and Amortization	1,651	1.98%	1,627	2.06%	1.48%
Total Operating Expenses	18,485	22.22%	18,224	23.12%	1.43%
OPERATING INCOME	10,469	12.59%	9,166	11.63%	14.22%
Interest and Other (Income) Expense:				0.00%
Interest and Investment Income	-337	-0.41%	-12	-0.02%	2708.33%
Interest Expense	830	1.00%	711	0.90%	16.74%
Other	0	0.00%	0	0.00%
Interest and Other, net	493	0.59%	699	0.89%	-29.47%
EARNINGS BEFORE PROVISION FOR INCOME TAXES	9,976	11.99%	8,467	10.74%	17.82%
Provision for Income Taxes	3,631	4.37%	3,082	3.91%	17.81%
NET EARNINGS	$6,345	7.63%	$5,385	6.83%	17.83%
Weighted Average Common Shares	1,338		1425
BASIC EARNINGS PER SHARE	$4.74		$3.78		25.40%
Diluted Weighted Average Common Shares	1,346		$1,434.00
DILUTED EARNINGS PER SHARE	$4.71		$3.76		25.27%
Balance sheet
Consolidated Balance Sheets (USD $)	Feb. 01, 2015		2/1/14
In Millions, unless otherwise specified		Verticle Analysis		Verticle Analysis	Horizonal analysis
Current Assets:
Cash and Cash Equivalents	$1,723	4.31%	$1,929	4.76%	-10.7%
Receivables, net	1,484	3.72%	1,398	3.45%	6.2%
Merchandise Inventories	11,079	27.73%	11,057	27.29%	0.2%
Other Current Assets	1,016	2.54%	895	2.21%	13.5%
Total Current Assets	15,302	38.31%	15,279	37.71%	0.2%
Property and Equipment, at cost	38,513	96.41%	39,064	96.41%	-1.4%
Less Accumulated Depreciation and Amortization	15,793	39.54%	15,716	38.79%	0.5%
Net Property and Equipment	22,720	56.88%	23,348	57.62%	-2.7%
Goodwill	1,353	3.39%	1,289	3.18%	5.0%
Other Assets	571	1.43%	602	1.49%	-5.1%
Total Assets	39,946	100.00%	$40,518	100.00%	-1.4%
Current Liabilities:
Short-Term Debt	290	0.73%	$0	0.00%	#DIV/0!
Accounts Payable	5,807	14.54%	5,797	14.31%	0.2%
Accrued Salaries and Related Expenses	1,391	3.48%	1,428	3.52%	-2.6%
Sales Taxes Payable	434	1.09%	396	0.98%	9.6%
Deferred Revenue	1,468	3.67%	1,337	3.30%	9.8%
Income Taxes Payable	35	0.09%	12	0.03%	191.7%
Current Installments of Long-Term Debt	38	0.10%	33	0.08%	15.2%
Other Accrued Expenses	1,806	4.52%	1,746	4.31%	3.4%
Total Current Liabilities	11,269	28.21%	10,749	26.53%	4.8%
Long-Term Debt, excluding current installments	16,869	42.23%	14,691	36.26%	14.8%
Other Long-Term Liabilities	1,844	4.62%	2,042	5.04%	-9.7%
Deferred Income Taxes	642	1.61%	514	1.27%	24.9%
Total Liabilities	30,624	76.66%	27,996	69.10%	9.4%
STOCKHOLDERS' EQUITY
Common Stock, par value $0.05; authorized: 10 billion shares; issued: 1.768 billion shares at February 1, 2015 and 1.761 billion shares at February 2, 2014; outstanding: 1.307 billion shares at February 1, 2015 and 1.380 billion shares at February 2, 2014	9	0.02%	88	0.22%	-89.8%
Paid-In Capital	8,885	22.24%	8,402	20.74%	5.7%
Retained Earnings	26,995	67.58%	23,180	57.21%	16.5%
Accumulated Other Comprehensive (Loss) Income	-452	-1.13%	46	0.11%	-1082.6%
Treasury Stock, at cost, 461 million shares at February 1, 2015 and 381 million shares at February 2, 2014	-26,194	-65.57%	-19,194	-47.37%	36.5%
Total Stockholders’ Equity	9,322	23.34%	12,522	30.90%	-25.6%
Total Liabilities and Stockholders' Equity	$39,946	100.00%	$40,518	100.00%	-1.4%

Ε 42036 83176 Verticle Analysis =B15/$B$15 =B16/$B$15 =B17/$B$15 41671 78812 51422 27390 Horizonal analysis =(B15-D15)/D15 =(B16-D16)/D16 =(B17-D17)/D17 54222 28954 16834 1651 18485 10469 =B19/$B$15 =B20/$B$15 =B21/$B$15 =B22/$B$15 16597 1627 18224 9166 14 15 NET SALES 16 Cost of Sales 17 GROSS PROFIT 18 Operating Expenses: 19 Selling, General and Administrative 20 Depreciation and Amortization 21 Total Operating Expenses 22 OPERATING INCOME 23 Interest and Other (Income) Expense: 24 Interest and Investment Income 25 Interest Expense 26 Other 27 Interest and Other, net 28 EARNINGS BEFORE PROVISION FOR INCOME TAXES 29 Provision for Income Taxes 30 NET EARNINGS 31 Weighted Average Common Shares 32 BASIC EARNINGS PER SHARE 33 Diluted Weighted Average Common Shares 34 DILUTED EARNINGS PER SHARE Verticle Analysis =D15/$D$15 =D16/$D$15 =D17/$D$15 =D18/$D$15 =D19/$D$15 =D20/$D$15 =D21/$D$15 =D22/$D$15 =D23/$D$15 =D24/$D$15 =D25/$D$15 =D26/$D$15 =D27/$D$15 =D28/$D$15 =D29/$D$15 =D30/$D$15 =(B19-D19)/D19 =(B20-D20/D20 =(B21-D21)/D21 =(B22-D22)/D22 -337 830 -12 711 =(B24-D24)/D24 =(B25-D25)/D25 =B24/$B$15 =B25/$B$15 =B26/$B$15 =B27/$B$15 =B28/$B$15 =B29/$B$15 =B30/$B$15 =(B27-D27)/D27 =(B28-D28)/D28 =(B29-D29/D29 =(B30-D30)/D30 493 9976 3631 6345 1338 4.74 1346 4.71 699 8467 3082 5385 1425 3.78 1434 3.76 =(B32-D32)/D32 =(B34-D34)/D34 35 36 Balance sheet 37 Consolidated Balance Sheets (USD $) Feb. 01, 2015 41671 Verticle Analysis Verticle Analysis Horizonal analysis 38 In Millions, unless otherwise specified 39 Current Assets: 40 Cash and Cash Equivalents 41 Receivables, net 42 Merchandise Inventories 43 Other Current Assets 44 Total Current Assets 45 Property and Equipment, at cost 46 Less Accumulated Depreciation and Amortization 47 Net Property and Equipment 48 Goodwill 49 Other Assets 50 Total Assets 51 Current Liabilities: 52 Short-Term Debt 1723 1484 11079 1016 15302 38513 15793 22720 1353 571 39946 =B40/$B$50 =B41/$B$50 =B42/$B$50 =B43/$B$50 =B44/$B$50 =B45/$B$50 =B46/$B$50 =B47/$B$50 =B48/$B$50 =B49/$B$50 =B50/$B$50 1929 1398 11057 895 15279 39064 15716 23348 1289 602 40518 =D40/$D$50 =D41/$D$50 =D42/$D$50 =D43/$D$50 =D44/$D$50 =D45/$D$50 =D46/$D$50 =D47/$D$50 =D48/$D$50 =D49/$D$50 =D50/$D$50 =(B40-D40)/D40 =(B41-D41)/D41 =(B42-D42)/D42 =(B43-D43)/D43 =(B44-044)/D44 =(B45-D45)/D45 =(B46-D46)/D46 =(B47-D47)/D47 =(B48-D48)/D48 = (B49-D49)/D49 =(B50-D50)/D50 290 =B52/$B$50 =D52/$D$50 =(B52-D52)/D52