Friday, November 19, 2010

Revenue and Expenses for Toys R Us and Wal-Mart

1. List the "Total Revenue or Net Sales," "Total Expenses," and "Net Income" or "Net Loss" for each company.
Toys R Us: (in millions)           Wal-Mart: (in millions)
Net Sales: $13,568                 Net Sales: $405,046
Total Expenses: $4,106           Total Expenses: $79,607
Net Income: $304                   Net Income: $14,335

2. For each company, calculate and record the component percentages for total expenses and net income by dividing each item by the amount of net sales.  round the percentage calculations to the nearest 0.1%
Toys R Us:                       Wal-Mart:
Total Expenses: 30.3%      Total Expenses: 19.7%
Net Income: 2.2%             Net Income: 3.5%

3. Compare the component percentages for net income for each company.  Which company has the better component percentage.
Wal-Mart

No comments:

Post a Comment