You will be analyzing the following firms: a. Ross Stores Inc (ROST) b. TJX Companies Inc (TJX) For your convenience, the financial statements of these companies are uploaded on the Blackboard. Please use them to prepare common-size financial statements and comparative financial statements. (2) Prepare horizontal analyses (income statement and balance sheet) for both companies. Note: the base year is 2016 for income statement and balance sheet. You should compute for 2018, 2017, and 2016, and a three year average. That is, you will have 4 columns of numbers on the balance sheet and on the income statement. 1 Ross Stores, Inc. (NMS: ROST) 2018 2017 2016 2015 Thousand Thousand Thousand Thousand 1.412,912 1290,294 1.111,599 761,602 512 0 1737 96,711 87.868 75,154 73,627 1750,442 1641,735 1512.886 1.419,104 143.954 130.748 113.410 116,125 0 3,404,019 3,151, 157 2,813,049 2,372,195 5,256,708 4.908,179 4.591.254 4,339,909 2.525,715 2.263,206 1997.003 2.475 201 2.382 464 2.328,048 2.342 906 712 1288 194346 187.718 166.966 152,687 6,073,691 5,722,051 5,309,351 4,869,119 0 3 As Reported Annual Balance Sheet 4 Report Date 5 Scale 6 Cash & cash equivalents 7 Short-term investments 8 Accounts receivable 9 Merchandise inventory 10 Prepaid expenses & other current assets 11 Deferred income taxes 12 Total current assets 13 Property & equipment, gross 14 Less: accumulated depreciation & amortization 15 Property & equipment, net 16 Long-term investments 17 Other long-term assets 18 Total assets 19 20 Accounts payable 21 Accrued expenses & other current liabilities 22 Accrued payroll & benefits 23 Income taxes payable 24. Current portion of long-term debt 25 Total current liabilities 26 Long-term debti 27 Total other long-term liabilities 28 Deferred income taxes 29 Total Liabilities 0 125 1331 1059,844 431,706 349,879 945,559 376,522 280.766 0 1.177,104 431596 363.035 37.749 0 2,009,484 312.440 321,713 124 308 2,767,945 84.973 1,926,402 311.994 348.541 85,806 2,672,743 1.021.735 398, 126 316.492 16.153 0 1,752,506 396, 493 290.950 121.385 2,561,334 1,602.847 396,025 268,168 130.088 2.397 128 30 31 Common stock 32 Additional paid-in capital 33 Treasury stock 34 Accumulated other comprehensive income 35 Retained earnings (accumulated deficit) 36 Total stockholders' equity 3.796 1292 364 318.279 3.682 1375 965 372.663 0 2298,762 3,305,746 3.919 1215.715 272,846 4,023 1.122.329 229,525 182 1,574,982 2.471.991 2.071.400 3,049,308 1,801, 138 2.748,017 balance sheet income statement Additional Informatio U aste BIU EA ESTE $ % Format as Table Cell Styles Delete Forma Cells Clipboard Font Alignment Number Styles fx B EF Ross Stores, Inc. (NMS: ROST) As Reported Annual Income Statement Report Date Scale Sales Cost of goods sold Gross Profit Selling, general & administrative expense 1 Interest expense 2 Earnings (loss) before taxes 3 Provision (benefits) for taxes on earnings 4 Net earnings (loss) 2018 Thousands 14,983,541 10,726,277 4,257,264 2,216,550 -10,162 2,050,876 463,419 1,587,457 2017 Thousands 14,134,732 10,042,638 4,092,094 2,043,698 7,676 2,040,720 677.967 1,362,753 2016 Thousands 12,866,757 9,173,705 3,693,052 1,890,408 16,488 1,786,156 668,502 1,117,654 2015 Thousands 11,939,999 8,576,873 3,363,126 1,738,755 12,612 1,611,759 591,098 1,020,661 WOOCO balance sheet income statement Additional Information 1 Ross Stores, Inc. (NMS: ROST) 3 Additional Information: 4 Report Date 5 Scale 6 market price per share 7 Weighted average shares outstanding - basic 8 Weighted average shares outstanding - diluted 9 Year end shares outstanding 10 Net earnings (loss) per share - basic 11 Net earnings (loss) per share - diluted 12 Dividends per common share 2018 2017 Thousands Thousands 117.89 80.25 369,533 381,174 372,678 384,329 368,242 379,618 4.3 3.58 4.26 3.55 0.9 0.64 2016 Thousands 65.6 392,124 394,958 391,893 2.85 2.83 0.54 2015 Thousands 53.81 403,034 406,405 402,339 2.53 2.51 0.47 14 Net cash flows from operating activties 2,066,677 1,681,278 1,558,851 1,326,252 C D F G 1 TJX Companies, Inc. (NYS: TJX) 2 As Reported Annual Balance Sheet 3 Report Date 4 Scale 5 Cash & cash equivalents 6 Short-term investments 7 Accounts receivable, net 8 Merchandise inventories 9 Prepaid expenses & other current assets 10 Federal, state & foreign income taxes recoverable 11 Current deferred income taxes, net 12 Total current assets 13 Total property at cost 14 Less accumulated depreciation & amortization 15 Net property at cost 16 Non-current deferred income taxes, net 17 Goodwill 18 Other assets 19 Total assets 2018 2017 Thousands Thousands 3,030,229 2,758,477 506,165 346,298 327,166 4,579,033 4,187,243 513,662 706,676 2016 2015 Thousands Thousands 2,929,849 2,095,473 543 242 352,313 258,831 238,072 3,644,959 3,695,113 373,893 380,530 0 11,059 0 7,750,774 6,772,560 9,003,403 9,068,667 4,470,5094,931,092 4,532,894 4,137,575 6,193 13,831 195,871 343,796 398,076 231,720 12,883,808 11,499,482 0 8,469,222 10,729,119 5,473,911 5,255,208 6,467 97,552 497,580 14,326,029 8,485,727 9,968,308 4,962,255 5,006,053 6,558 100,069 459,608 14,058,015 21 Accounts payable 22 Accrued expenses & other current liabilities 23 Federal, state & foreign income taxes payable 24 Total current liabilities 25 Other long-term liabilities 26 Non-current deferred income taxes, net 27 Long-term debt 28 Total Liabilities 29 balance sheet income statement 2,644,143 2,733,076 154 155 5,531,374 1,354,242 158, 191 2,233,616 9,277,423 2,488,373 2,522,961 114,203 5,125,537 1,320,505 233,057 2,230,607 8,909,706 2.230,904 2,320,464 206 288 4,757,656 1,073,954 1 073 954 314,000 2,227,599 8,373,209 2,203,050 2,069 659 129,521 4,402,230 . 881 021 285,102 1,624,054 7,192,407 Additional Information kom 1 TJX Companies, Inc. (NYS: TJX) 2 As Reported Annual Income Statement 3 Report Date 4 Scale 5 Net sales 6 Cost of sales, including buying & occupancy costs 7 Gross Profit 8 Selling, general & administrative expenses 9 Impairment of goodwil & other long-lived assets, related to Sierra Trading Post 10 Gain (loss) on early extinguishment of debt 11 Pension settlement charge 12 Interest expense 13 Income (loss) before provision for Income taxes 14 Provision for benefit from) income taxes 15 Net income (loss) 2018 2017 2016 2015 2014 Thousands Thousands Thousands Thousands Thousands 38.972.934 35 364,664 33.183.744 30.944.938 29.078.407 27.831,177 25.502,167 23.565.754 22.034,523 20.776.522 11.141.757 10.362,497 9,617.990 8.910,415 8.301,885 6.923.564 6.375.071 5.768.467 5.205.715 4.695.384 0 99.250 0 0 0 0 51.773 0 16.830 36, 122 0 31,173 8.860 31,588 43,534 46.400 39.787 4,173,211 3,856,588 3,723,043 3,658,300 3,549,884 1.113.413 1.248.640 1.424 8091 380 642 1334,756 3,059.798 2.607.948 2.298.234 2.277,658 2.215.128 18 20 020 1 TJX Companies, Inc. (NYS: TJX) 2018 3 Additional information 4 Report Date 5 Scale 6 market price per share 7 Weighted average shares outstanding - basic 8 Weighted average shares outstanding-diluted 9 Year end shares outstanding 10 Cash dividends declared per share 11 Net earnings (los) per share - basic 12 Net earnings (loss) per share-diluted 2017 2016 2015 2014 Thousands Thousands Thousands Thousands Thousands 61.96 75.46 75.13 70.91 75.12 1.241.153 636,827 655,647 673,484 692 691 1.259.252 646,105 654,432 683,251 703 545 1.217.183 628 009 646,319 663,496 705 017 104 0.84 0.70 3.51 3.38 3 20 3.46 333 3.15 125 14 Net cash flows from operating activities 4,088,450 3,025,624 3,601,894 2,037,343 3,008,369 balance sheet income statement Additional Information NE