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TJ Inc. and Mall Inc.operate in the same industry.

A). Use the financials below to compare the two firmsFocus on the three levers of performance that affect return on equity (ROE), comparing and contrasting these three DuPont components of ROE.

B.) Do you think the difference between these firms can be attributed to weak management in one of the firms; or could it be that the two simply have different competitive strategies? Explain briefly.

	TJ Inc		In$000's						Mall Inc		In$000's
	200X								200X
	Revenue		59,490,000						Revenue		348,650,000
	COGS		39,399,000						COGS		264,152,000
	Gross Profit		20,091,000						Gross Profit		84,498,000
	Operating Exp		15022000						Operating Exp		64001000
	Operating Profits		5,069,000						Operating Profits		20,497,000
	Interest Expense		597,000						Interest Expense		1,809,000
	EBT		4,472,000						EBT		18,688,000
	Tax		1,710,000						Tax		6,365,000
	Net Income		2,762,000						Net Income		12,323,000
	Assets		31-Dec-0X						Assets		31-Dec-0X
	Cash		813,000						Cash		7,373,000
	A/R		6,194,000						A/R		2,840,000
	Inventory		6,254,000						Inventory		33,685,000
	Current Assets		13,261,000						Current Assets		43,898,000
	Prop, Plant & Equip		21,431,000						Prop, Plant & Equip		88,440,000
	Total Assets		34,692,000						Total Assets		132,338,000
	Liabilities & Equity								Liabilities & Equity
	A/P		9,755,000						A/P		43,471,000
	ST Portion of LTD		1,362,000						ST Portion of LTD		8,283,000
	Current Liabilities		11,117,000						Current Liabilities		51,754,000
	LT Debt		10,599,000						LT Debt		30,735,000
	Total Liabilities		21,716,000						Total Liabilities		82,489,000
	Total Equity		12,976,000						Total Equity		49,849,000
Total L & Equity		34,692,000						Total L & Equity		132,338,000

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