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KOHL'S CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
	2007			2006			2005
Net Sales	$ 16,473,734	100.00%		$ 15,596,910	100.00%		$ 13,444,397	100.00%
Cost of merchandise sold (exclusive of depreciation shown seperately below)	10,459,549	63.49%		9,922,073	63.62%		8,664,077	64.44%
Gross margin	6,014,185	36.51%		5,674,837	36.38%		4,780,320	35.56%
Operating expenses:
Selling, general, and administrative	3,696,841	22.44%		3,422,600	21.94%		2,980,853	22.17%
Depreciation and amorization	452,145	2.74%		387,674	2.49%		338,916	2.52%
Preopening expenses	60,722	0.37%		49,762	0.32%		44,370	0.33%
Operating income	1,804,477	10.95%		1,814,801	11.64%		1,416,181	10.53%
Other expense (income):
Interest expense	82,412	0.50%		66,743	0.43%		73,925	0.55%
Interest income	(19,996)	-0.12%		(26,387)	-0.17%		(3,534)	-0.03%
Income before income taxes	1,742,061	10.57%		1,774,445	11.38%		1,345,790	10.01%
Provision for income taxes	658,210	4.00%		665,764	4.27%		503,830	3.75%
Net income	$ 1,083,851	6.58%		$ 1,108,681	7.11%		$ 841,960	6.26%
Net income per share:
Basic	$ 3.41	0.00%		$ 3.34	0.00%		$ 2.45	0.00%
Diluted	$ 3.39	0.00%		$ 3.31	0.00%		$ 2.43	0.00%

KOHL'S CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Data)
ASSETS	February 2, 2008			February 3, 2007			January 28, 2006
Current Assets:
Cash	$ 180,543	1.71%		$ 189,170	2.09%		$ 126,839	1.39%
Short-term investments	483,128	4.58%		431,230	4.77%		160,077	1.75%
Merchandise inventories	2,855,733	27.04%		2,578,378	28.54%		2,237,568	24.44%
Accounts Receivable	-	0.00%		-	0.00%		1,652,065	18.05%
Defferred Income Taxes	71,069	0.67%		40,190	0.44%		23,677	0.26%
Other	133,416	1.26%		154,919	1.71%		66,327	0.72%
Total Current Assets	3,723,889	35.26%		3,393,887	37.57%		4,266,553	46.61%
Property and Equipment, net	6,509,819	61.65%		5,352,974	59.25%		4,616,303	50.43%
Favorable lease rights, net	209,958	1.99%		219,286	2.43%		212,380	2.32%
Goodwill	9,338	0.09%		9,338	0.10%		9,338	0.10%
Other Assets	107,078	1.01%		58,539	0.65%		48,920	0.53%
Total Assets	$ 10,560,082	100.00%		$ 9,034,024	100.00%		$ 9,153,494	100.00%
LIABILITES AND SHAREHOLDERS' EQUITY
Current Liabilites:
Accounts Payable	$ 835,985	7.92%		$ 934,376	10.34%		$ 829,971	9.07%
Accrued Liabilites	798,508	7.56%		725,025	8.03%		642,091	7.01%
Income Taxes Payable	124,254	1.18%		233,263	2.58%		166,908	1.82%
Current Portion of long-term debt and capital leases	12,701	0.12%		18,841	0.21%		107,941	1.18%
Total current Liabilites	1,771,448	16.77%		1,911,505	21.16%		1,746,911	19.08%
Long term debt and capital leases	2,051,875	19.43%		1,040,057	11.51%		1,046,104	11.43%
Deffered income taxes	262,451	2.49%		243,530	2.70%		217,801	2.38%
Other long-term liabilites	372,705	3.53%		235,537	2.61%		185,340	2.02%
Common Stock - $.01 par value, 800,000 shares authorized, 350,753; and 345,088 shares issued	3,508	0.03%		3,485	0.04%		3,450	0.04%
Paid-in capital	1,911,041	18.10%		1,748,792	19.36%		1,583,035	17.29%
Treasury stock at cost, 40,285; 27,516; and 0 shares	(2,376,331)	-22.50%		(1,628,416)	-18.03%		-	0.00%
Retained earnings	6,563,385	62.15%		5,479,534	60.65%		4,370,853	47.75%
Total shareholder's equity	6,101,603	57.78%		5,603,395	62.03%		5,957,338	65.08%
Total liabilites and shareholders' equity	$ 10,560,082	100.00%		$ 9,034,024	100.00%		$ 9,153,494	100.00%

DILLARD'S INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
	Years Ended
	February 2, 2008			February 3, 2007			January 28, 2006
Net Sales	$ 7,207,417	97.78%		$ 7,636,056	97.77%		$ 7,551,697	98.14%
Service charges and other income	$ 163,389	2.22%		$ 174,011	2.23%		$ 142,948	1.86%
	7,370,806	100.00%		7,810,067	100.00%		7,694,645	100.00%
Cost of sales	4,786,655	64.94%		5,032,351	64.43%		5,014,021	65.16%
Advertising, selling and general expenses	2,065,288	28.02%		2,096,018	26.84%		2,041,481	26.53%
Depreciation and amortization	298,927	4.06%		301,147	3.86%		301,864	3.92%
Rentals	59,987	0.81%		55,480	0.71%		47,538	0.62%
Interest and debt expense, net	91,556	1.24%		87,642	1.12%		105,570	1.37%
Gain on disposal of assets	(12,625)	-0.17%		(16,413)	-0.21%		(3,354)	-0.04%
Asset imparment and store closing charges	20,500	0.28%		-	0.00%		61,734	0.80%
Income before income taxes and equity in earnings of joint ventures	60,518	0.82%		253,842	3.25%		125,791	1.63%
Income taxes	(13,010)	-0.18%		(20,580)	-0.26%		(14,300)	-0.19%
Equity in earnings of joint ventures	6,253	0.08%		12,384	0.16%		9,994	0.13%
Net income	$ 53,761	0.73%		$ 245,646	3.15%		$ 121,485	1.58%
Earnings per common share:
Basic	$ 0.69	0.00%		$ 3.09	0.00%		$ 1.49	0.00%
Diluted	$ 0.68	0.00%		$ 3.05	0.00%		$ 1.49	0.00%

DILLARD'S INC.
CONSOLIDATED BALANCE SHEETS
ASSETS	February 2, 2008			February 3, 2007			January 28, 2006
Current Assets:
Cash and cash equivalents	$ 88,912	1.67%		$ 193,994	3.59%		$ 299,840	5.44%
Accounts Receivable	10,880	0.20%		10,508	0.19%		12,523	0.23%
Merchandise inventories	1,779,279	33.33%		1,772,150	32.84%		1,802,695	32.72%
Other current Assets	66,117	1.24%		71,194	1.32%		35,421	0.64%
Total Current Assets	1,945,188	36.44%		2,047,846	37.95%		2,150,479	39.03%
Property and Equipment:
Land and land improvements	83,346	1.56%		89,451	1.66%		90,879	1.65%
Buildings and seasehold improvements	3,117,292	58.40%		2,931,244	54.32%		2,792,417	50.68%
Furniture, fixtures and equipment	1,969,343	36.89%		2,160,190	40.03%		2,143,914	38.91%
Buildings under construction	96,057	1.80%		56,856	1.05%		92,336	1.68%
Buildings and quipment under capital leases	48,910	0.92%		48,910	0.91%		81,496	1.48%
Less accumulated depreciation and amortization	(2,124,504)	-39.80%		(2,140,025)	-39.65%		(2,053,419)	-37.27%
	3,190,444	59.77%		3,146,626	58.31%		3,147,623	57.13%
Goodwill	31,912	0.60%		34,511	0.64%		34,511	0.63%
Other Assets	170,585	3.20%		167,752	3.11%		177,142	3.22%
Total Assets	$ 5,338,129	100.00%		$ 5,396,735	100.00%		$ 5,509,755	100.00%
LIABILITES AND STOCKHOLDERS' EQUITY
Current Liabilites:
Trade accounts payable and accrued expenses	$ 753,309	14.11%		$ 797,806	14.78%		$ 858,082	15.57%
Current portion of long-term debt	196,446	3.68%		100,635	1.86%		198,479	3.60%
Current portion of capital lease obligations	2,613	0.05%		3,679	0.07%		5,929	0.11%
Other short-term borrowings	195,000	3.65%		-	0.00%		-	0.00%
Federal and state income taxes including deferred taxes	36,802	0.69%		74,995	1.39%		84,902	1.54%
Total current Liabilites	1,184,170	22.18%		977,115	18.11%		1,147,392	20.82%
Long-term debt	760,165	14.24%		956,611	17.73%		1,058,946	19.22%
Capital lease obligations	25,739	0.48%		28,328	0.52%		31,806	0.58%
Other liabilites	217,403	4.07%		206,122	3.82%		259,111	4.70%
Deffered income taxes	436,541	8.18%		448,770	8.32%		479,123	8.70%
Operating leases and commitments
Guaranteed preferred beneficial interests in the Company's subordinated debentures	200,000	3.75%		200,000	3.71%		200,000	3.63%
Stockholder's equity:
Common stock, Class A - 116,445,495; 116,217,645; and 115,237,382 shares issued; 71,115,347;76,130,196; and 75,283,433 shares outstanding	1,165	0.02%		1,162	0.02%		1,153	0.02%
Common stock, Class B (convertible) - 4,010,929 shares issued and outstanding	40	0.00%		40	0.00%		40	0.00%
Additional paid-in capital	778,987			772,560			749,068
Accumulated other comprehensive loss	(22,211)	-0.42%		(21,229)	-0.39%		(14,574)	-0.26%
Retained earnings	2,680,690	50.22%		2,640,224	48.92%		2,407,327	43.69%
Less treasury stock, at cost, Class A - 45,290,148, 40,087,449 and 39,953,949 shares	(924,560)	-17.32%		(812,968)	-15.06%		(809,637)	-14.69%
Total stockholders' equity	2,514,111	47.10%		2,579,789	47.80%		2,333,377	42.35%
Total liabilites and stockholders' equity	$ 5,338,129	100.00%		$ 5,396,735	100.00%		$ 5,509,755	100.00%

Please compute return on equity for fiscal years 2007 and 2006 for both companies - calculate the five components of ROW and verify that their product equals ROE. Use average total assets and average stockholder's equity.

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