Radioshack Corp – ‘10-K’ for 12/31/94

As of:  Thursday, 3/30/95   ·   For:  12/31/94   ·   Accession #:  96289-95-10   ·   File #:  1-05571

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Annual Report   —   Form 10-K
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Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                         99±   460K 
 2: EX-27       Financial Data Schedule (Pre-XBRL)                     1      6K 

10-K   —   Annual Report
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION          
Washington, D.C. 20549          

FORM 10-K           

[x]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE               
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)                
For the fiscal year ended December 31, 1994                   

OR          

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)                   
OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)        
FOR THE TRANSITION PERIOD                                       

Commission file number 1-5571         

TANDY CORPORATION           
(Exact name of registrant as specified in its charter)          

DELAWARE                               75-1047710       
(State or other jurisdiction of            (I.R.S. Employer             
incorporation or organization)           Identification No.)          

1800 One Tandy Center, Fort Worth, Texas         76102                  
(Address of principal executive offices)       (Zip Code)               

Registrant's telephone number, including area code                      
(817) 390-3700                                                          

SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:             

                           Name of each exchange
Title of each class             on which registered     
Common Stock, par value $1 per share  New York Stock Exchange           
Preferred Share Purchase Rights       New York Stock Exchange           

SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:             
None                                                                

Indicate by check mark if disclosure of delinquent filers         
pursuant to Item 405 of Regulation S-K is not contained                 
herein, and will not be contained, to the best of                       
registrant's knowledge, in definitive proxy or information              
statements incorporated by reference in Part III of this Form           
10-K or any amendment to this Form 10-K. ____                           

Indicate by check mark whether the registrant (1) has             
filed all reports required to be filed by Section 13 or 15(d)           
of the Securities Exchange Act of 1934 during the preceding             
12 months (or for such shorter period that the registrant was           
required to file such reports), and (2) has been subject to             
such filing requirements for the past 90 days.  Yes X  No               
                                       ---   ---
As of March 21, 1995, the aggregate market value of the           
voting stock held by non-affiliates of the registrant was               
$2,877,348,049 based on the New York Stock Exchange closing             
price.                                                                  

As of March 21, 1995, there were 66,190,497 shares of the         
registrant's Common Stock outstanding.                                  

Documents Incorporated by Reference         

Portions of the Proxy Statement for the 1995 Annual Meeting             
of Stockholders are incorporated by reference into Part III.            

The Index to Exhibits is on Sequential Page No. 56.         
Total Pages 71.         

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PART I          

ITEM 1. BUSINESS.                                                       

GENERAL                                                                 
Tandy Corporation, a Delaware corporation, was                    
incorporated in 1967 ("Tandy" or the"Company").  The Company            
engages in the retail sale of consumer electronics including            
personal computers primarily in the United States.  The                 
Company's retail operations include the Radio Shack(R),                 
McDuff Electronics(R), The Edge in Electronics(R), Computer             
City(R) and Incredible Universe(R) store chains as well as              
some new test concepts.  See "Management's Discussion and               
Analysis of Results of Operations and Financial Condition"              
found in Item 7 for a discussion of divisional sales data.              

Radio Shack.  Radio Shack is the Company's largest          
operating division.  At December 31, 1994, Radio Shack          
had 4,598 company-owned stores located throughout the           
United States.  These stores average approximately 2,350        
square feet in area and are located in major malls, strip       
centers and individual store fronts, primarily in               
metropolitan markets.  To provide service to smaller            
communities, Radio Shack had on the same date a network         
of 2,005 dealer/franchise stores.  The dealers are              
generally engaged in other retail operations and augment        
their sales with Radio Shack products.  This network            
includes 67 international dealers at December 31, 1994.         

The 4,598 company-owned stores carry a broad assortment     
of electronic parts and accessories, audio/video                
equipment, personal computers, cellular and conventional        
telephones as well as specialized products such as              
scanners, electronic toys and hard to find batteries.           
The personal computers, which account for approximately         
12% of Radio Shack's sales, primarily target entry level        
users seeking computers for home, individual and small          
business use.  The Company plans to open 100 company-           
owned Radio Shack stores each year for the next five            
years.  Many of these new stores will be in major markets       
such as Chicago, New York, Atlanta and Los Angeles.             
Radio Shack is also focusing on Alternative Channels of         
Distribution ("ACD"), which are geared to enhance its           
"service oriented" approach.  A few ACDs include The            
Repair Shop at Radio Shack(SM), Radio Shack Gift                
Express(SM), and direct delivery service.                       

Computer City.  As of December 31, 1994, the Company        
had 69 Computer City(R) stores open, four of which were         
in Europe and three in Canada.  The Computer City chain         
operates as a supercenter format featuring many name            
brand computers, software and related products, including       
U.S.  Logic, IBM, Apple, Sony, Lotus, Borland, Microsoft,       
Packard-Bell, Compaq, AST and Hewlett-Packard.  The             
sixty-one Computer City Supercenters average about 23,000       
square feet and carry more than 5,000 products.  At             
December 31, 1994, there were eight Computer City               
Express(SM) stores which are approximately 10,000 square        
feet and serve smaller markets.  The Company plans to           
open 20 to 30 additional stores in 1995, which includes 6       
to 10 Computer City Express stores.                             

Incredible Universe.  At December 31, 1994, Tandy           
operated nine Incredible Universe(R) stores.  These             
stores are approximately 184,000 square feet and offer a        
broad selection of consumer electronics and appliances.         
The Company opened its ninth store in Auburn, Washington        
late in 1994.  In 1995 the Company plans to open stores         
in Denver, Indianapolis, New York Metro, Houston, San           
Diego, Salt Lake City and greater Washington, D.C.,             
markets.  In addition, one more Incredible Universe store       
may open in 1995.                                               

Tandy Name Brand Retail Group.  At December 31, 1994,       
the Tandy Name Brand Retail Group ("Tandy Name Brand")          
was comprised of VideoConcepts(R), McDuff Electronics and       
Appliance(R) Supercenters and The Edge in Electronics(R)        
retail outlets.  This group then operated a total of 306        
stores which sold name brand televisions, audio                 
equipment, personal computers and other electronic              
products and appliances.                                        

Tandy Name Brand operated three distinctly different        
types of store formats -- mall stores, boutique stores          
and supercenters.  The 219 mall stores averaged 3,100           
square feet in size while the 71 supercenters, which are        
located in stand-alone or strip center locations,               
averaged 12,300 square feet.  The Edge in Electronics           
began operating in 1990.  These electronic boutique             
stores are designed for mall customers interested in            
fashionable personal and portable name brand electronics.       
As of December 31, 1994, these 16 stores were located in        
major malls and averaged approximately 1,100 square feet.       

On December 30, 1994, the Company adopted a business        
restructuring plan to close or convert 233 stores which         
included VideoConcept and McDuff Electronics mall stores        
and a few McDuff Electronics and Appliance Supercenters.        
The stores will be closed during the first quarter of           
1995.  Of the 233 stores, 33 sites will be converted to         
Radio Shack or Computer City Express stores.  On January        
3, 1995, the Company also announced that Tandy Name Brand       
will be dissolved and the continuing stores will become         
part of a new Specialty Retail Group of the Radio Shack         
division.  This group will be comprised of McDuff               
Electronics and Appliance Supercenters, The Edge in             
Electronics, Famous Brand Electronics Warehouse and             
Audio, Video and Computers retail outlets.  See                 
"Management's Discussion and Analysis of Results of             
Operations and Financial Condition" found in Item 7 and         
Note 4 of the Notes to Consolidated Financial Statements        
for more information on the plan.                               

The Company closed 110 Tandy Name Brand stores in the       
first quarter of 1993.  See "Management's Discussion            
and Analysis of Results of Operations and Financial             
Condition" found in Item 7 and Note 4 of the Notes to           
Consolidated Financial Statements for more information.         

Supporting the retail operations is an extensive                
infrastructure that includes:                                           

A&A International, Inc. - This wholly-owned subsidiary      
of the Company serves the wide-ranging international            
import/export, sourcing, evaluation, logistics and              
quality control needs of the Company.  InterTAN Inc.            
("InterTAN") is the largest outside customer of the             
Company.  Most of A&A's activity for InterTAN involves          
sourcing of goods from manufacturers in the Far East.           
For more discussion on InterTAN see Note 22 of the Notes        
to Consolidated Financial Statements.                           

Tandy Service Centers - The Company maintains a large       
service and support network in the consumer electronics         
retail industry.  These centers repair name brand and           
private label products sold through all of the Company's        
retail distribution channels.  These centers are also the       
primary support for the Repair Shop at Radio Shack              
program.  There are 128 service centers throughout the          
nation and Canada and over one million parts are stocked        
in the Tandy Service division.                                  

Regional Distribution Centers - The 15 distribution         
centers ship over one million cartons each month to the         
Company's retail outlets.  This group also supports the         
Radio Shack Gift Express service.                               

Tandy Information Services - TIS collects information       
from the retail stores nationwide and updates a large           
database with sales and other information.  This database       
is a sophisticated marketing tool benefiting every phase        
of the Company's operations.  TIS also processes                
inventory, accounting, payroll, telecommunications and          
other operating information for all of the Company's            
operations.  In addition, specialized information is            
tracked for the Company's distribution and corporate            
activities.                                                     

Tandy Credit Corporation - This operation, a wholly         
owned subsidiary of the Company, has helped to support          
sales of the Company's retail operations and provided the       
retail divisions with additional marketing flexibility          
through the utilization of credit promotions.  This group       
has in the past maintained and managed Tandy's various          
private label credit cards.                                     

In December 1994, the Company sold the Computer City        
and Incredible Universe credit card portfolios to SPS           
Transaction Services, Inc.("SPS"), a majority-owned             
subsidiary of Dean Witter, Discover & Co.  In January           
1995, the Company signed an agreement with SPS to sell          
Tandy Credit and the Radio Shack and McDuff private label       
credit card portfolios.  The sale of Tandy Credit and the       
sale of the Radio Shack and McDuff portfolios is                
contingent upon and subject to regulatory, rating agency        
and other approvals.  This transaction is expected to           
close during the first half of 1995.  See "Management's         
Discussion and Analysis of Results of Operations and            
Financial Condition" found in Item 7 and Note 3 of              
the Notes to Consolidated Financial Statements for more         
information.                                                    

Tandy National Bank (the "Bank"), a limited purpose         
nationally chartered credit card bank, was established on       
May 11, 1994.  The Bank, a wholly-owned subsidiary of           
Tandy Corporation, was created to operate the private           
label consumer credit card programs for Tandy.  All new         
accounts approved after May 12, 1994 were originated and        
owned by the Bank.  After the Company's sale of all             
the private label credit card portfolios, the Bank will         
cease operations.                                               

Tandy Transportation, Inc. - A large fleet of tractors      
and trailers transports much of the merchandise from the        
ports of entry to the Company's regional distribution           
centers and local distribution facilities for delivery to       
the Company's retail outlets.                                   

Consumer Electronics Manufacturing - The Company also       
engages in the manufacturing business with nine                 
manufacturing facilities in the United States and two           
overseas manufacturing operations in China and Taiwan.          
The China operation is a joint venture.  These 11               
manufacturing facilities cover a total of 1,472,000             
square feet and employ approximately 4,000 workers and          
professionals as of December 31, 1994.  The Company             
manufactures a variety of products for use in its               
consumer electronics retailing operations.  The products        
include audio, video, telephony, antennas, wire and cable       
products and a wide variety of hard to find parts for           
consumer electronic products.  Most of the Company's            
manufacturing output is sold through the Radio Shack            
store chain.  The Taiwan manufacturing plant will be            
closed in the first half of 1995 and its products will be       
manufactured by the China operations.                           

DISCONTINUED OPERATIONS                                                 
On June 25, 1993, the Board of Directors of Tandy adopted         
a formal plan of divestiture under which it would sell its              
computer manufacturing and marketing businesses, the                    
O'Sullivan Industries, Inc.("O'Sullivan") ready-to-assemble             
furniture manufacturing and related marketing business, the             
Memtek Products division and the Lika printed circuit board             
business.  See "Discontinued Operations" in Management's                
Discussion and Analysis of Results of Operations and                    
Financial Condition for further discussion.                             

The Company closed the sale of the computer manufacturing         
and marketing businesses to AST Research, Inc. ("AST") on               
July 13, 1993, and the sale of Memtek Products manufacturing            
and marketing operations on December 16, 1993 to Hanny                  
Magnetics (B.V.I.) Limited, a British Virgin Islands                    
corporation, including the license agreement with Memorex               
Telex, N.V. for the use of the Memorex trademark on licensed            
consumer electronics products.  On February 2, 1994, the                
Company sold all the common stock of O'Sullivan Industries              
Holdings, Inc., the parent company of O'Sullivan, to the                
public at $22 per share.  On October 11, 1994, Tandy sold the           
assets used in its Lika(R) printed circuit board division to            
Viktron Limited Partnership, an Illinois limited partnership.           
The proceeds from the sale and liquidation of assets                    
approximated $16,380,000 which included $7,754,000 in cash,             
proceeds from liquidation of retained assets of $5,594,000              
and secured promissory notes for $3,032,000.                            

In connection with the computer manufacturing sale, the           
Memtek Products sale and the Lika sale, the Company agreed to           
retain certain liabilities primarily relating to warranty               
obligations on products sold prior to the sale.  Management             
believes that accrued reserves, as reflected on its December            
31, 1994 balance sheet, are adequate to cover estimated                 
future warranty obligations for the products.                           

SEASONALITY                                                             
As is the case with other retail businesses, the Company's        
net sales and other revenues are greater during the Christmas           
season than during other periods of the year.  There is a               
corresponding pre-seasonal inventory build-up requiring                 
working capital associated with the anticipated increased               
sales volume.  For additional information, see Note 23 of the           
Notes to Consolidated Financial Statements.                             

PATENTS AND TRADEMARKS                                                  
Tandy owns or is licensed to use many trademarks related          
to its business in the United States and in foreign                     
countries.  Radio Shack, Computer City, Incredible Universe,            
McDuff Electronics, VideoConcepts, Realistic, Tandy and                 
Optimus are some of the registered marks most widely used by            
the Company.  Tandy believes that the Radio Shack, Computer             
City and Incredible Universe names and marks are                        
well-recognized and associated with a high-quality service              
provider by consumers.  The Company's products are sold                 
primarily under the Radio Shack, Optimus, Tandy, Computer               
City and Realistic trademarks which are registered in the               
U.S. and many foreign countries.  The Company believes that             
the loss of the Radio Shack name or mark would be material to           
its business, but does not believe that the loss of any one             
trademark registration would be material.                               

Tandy also owns various patents relating to retail and            
support functions and various products which Tandy has                  
previously designed and manufactures.                                   

SUPPLIERS                                                               
The Company obtains merchandise from a large number of            
suppliers from various parts of the world.  Alternative                 
sources of supply exist for most merchandise and raw                    
materials purchased by the Company.  As the Company's product           
line is diverse, the Company would not expect a lack of                 
availability of any single product or raw material to have a            
material impact on its operations.                                      

BACKLOG ORDERS                                                          
The Company has no material backlog of orders for the             
products it sells.                                                      

COMPETITION                                                             
The consumer electronics retail business is highly                
competitive.  The Company competes in the sale of its                   
products and services with department stores, mail order                
houses, discount stores, general merchants, home appliance              
stores and gift stores which sell comparable products                   
manufactured by others.  Competitors range in size from local           
drug and hardware stores to large chains and department                 
stores.  Computer store chains and franchise groups as well             
as independent computer stores and several major retailers              
compete with the Company in the retail personal computer                
marketplace.  Consumer electronic and computer mail-order               
companies also compete with the Company.  The products which            
compete with those sold by the Company are manufactured by              
numerous domestic and foreign manufacturers.  Many of these             
products carry nationally recognized brand names or private             
labels and are sold in markets common to the Company.  Some             
of the Company's competitors have financial resources equal             
to or greater than the Company's resources.                             

Management believes that among the factors that are               
important to its competitive position are price, quality,               
service and the broad selection of electronic products and              
computers carried at conveniently located retail outlets.               
The Company's utilization of trained personnel and its                  
ability to use national and local advertising media are                 
important to the Company's ability to compete in the consumer           
electronics marketplace.  Management of the Company believes            
it is a strong competitor with respect to each of the factors           
referenced above.  Given the highly competitive nature of the           
consumer electronics retail business, no assurance can be               
given that the Company will continue to compete successfully            
with respect to each of the factors referenced above.  Also,            
the Company would be adversely affected if its competitors              
were to offer their products at significantly lower prices,             
introduce innovative or technologically superior products not           
yet available to the Company or if the Company were unable to           
obtain products in a timely manner for an extended period of            
time.                                                                   

The Company focuses on various types of store formats to          
address the marketplace.  Each of the Company's retailing               
formats uses a distinct but complementary path to the                   
marketplace, based on its unique customer appeal, marketing             
strengths and margin structure.                                         

Radio Shack.  Radio Shack(R) stores offer the shopping        
convenience of approximately 6,600 dealers and            
company-owned stores, high-quality private label          
products, unique selection, knowledgeable personnel       
and excellent customer service.  Radio Shack has          
strong sales in approximately 3,200 different items in    
such consumer-demand product categories as speakers,      
batteries, communications equipment, tape decks,          
antennas, electronic components and accessories.          

Computer City.  Computer City(R) stores offer                 
approximately 5,000 different name-brand items,           
competitive prices and excellent customer service on      
computers, computer software and accessories.  While      
the SuperCenters are approximately 23,000 square feet,    
Computer City Express stores average 10,000 square        
feet and serve smaller markets and also supplement        
SuperCenters in larger markets.                           

Incredible Universe.  A new concept in the retailing of       
name brand consumer electronics and appliances, these     
stores are approximately 184,000 square feet in size      
and carry over 85,000 different stock-keeping units       
which provide the customer with a "universe" of           
choices.                                                  

Tandy Name Brand.  In the past the Company has sold name      
brand consumer electronics and appliances through         
Tandy Name Brand which included three distinctly          
different types of store formats.  The Tandy Name         
Brand group will be dissolved and continuing stores       
will be integrated into the Radio Shack division as       
the Specialty Retail Group.                               

The Company has faced intense competition in its consumer         
electronics retailing businesses.  Competition is driven by             
technology and product cycles, as well as the economy.  In              
the consumer electronics retailing business, competitive                
factors include price, product quality, product features,               
consumer services, manufacturing and distribution capability            
and brand reputation.                                                   

RESEARCH AND DEVELOPMENT                                                
Research and development expenditures are not significant.        

EMPLOYEES                                                               
As of December 31, 1994, the Company had approximately            
45,800 employees, excluding approximately 1,700 full time               
employees associated with the Tandy Name Brand, Tandy Credit            
Division and Service Contract group which the Company has               
announced it will close or sell.  The number includes                   
approximately 4,000 temporary retail employees remaining from           
the Christmas selling season.  Management of the Company                
considers the relationship between the Company and its                  
employees to be good.  It does not anticipate any work                  
stoppage due to labor difficulties.                                     

ITEM 2.  PROPERTIES.                                                    
Information on the Company's properties is in                     
"Management's Discussion and Analysis of Results of                     
Operations and Financial Condition" and the financial                   
statements included in this Form 10-K and is incorporated               
herein by reference.  The following items are discussed                 
further on the referenced pages:                                        

                      Page
Retail Outlets ......................     14                    
Property, Plant and Equipment .......     40                    
Leases ..............................     43                    

The Company leases rather than owns most of its retail            
facilities.  However, the buildings of three of the                     
Incredible Universe stores are owned rather than leased.  The           
Radio Shack, Tandy Name Brand and Computer City stores are              
located primarily in major shopping malls, stand-alone                  
buildings or shopping centers owned by other companies.  The            
Company owns most of the property on which its executive                
offices are located in Fort Worth, Texas as well as five                
distribution facilities and most of its manufacturing                   
facilities and land located throughout the United States.               
Existing warehouse and office facilities are deemed adequate            
to meet the Company's needs in the foreseeable future.                  

ITEM 3.  LEGAL PROCEEDINGS.                                             
The Company is a defendant in a consolidated action titled        
"O'Sullivan Industries Holdings, Inc. Securities Litigation",           
which was commenced in 1994 and is currently pending before             
the United States District Court for the Western District of            
Missouri.  The plaintiffs seek damages in an unspecified                
amount alleging that O'Sullivan's initial public offering               
prospectus, certain press releases and other materials                  
contained material misrepresentations and omissions.  They              
have also named O'Sullivan, O'Sullivan's officers and                   
directors, and the underwriters as defendants.  Tandy                   
believes that the lawsuit is totally without merit and is               
defending itself vigorously.  It further believes that even             
though an adverse resolution of the litigation may have a               
negative impact on its results of operations in the year of             
resolution, resolution will not have a material adverse                 
effect on its financial condition or liquidity.                         

Tandy has various claims, lawsuits, disputes with third           
parties, investigations and pending actions involving                   
allegations of negligence, product defects, discrimination,             
infringement of intellectual property rights, securities                
matters, tax deficiencies, violations of permits or licenses,           
and breach of contract and other matters against the Company            
and its subsidiaries incident to the operation of its                   
business.  The liability, if any, associated with these                 
matters was not determinable at December 31, 1994.  While               
certain of these matters involve substantial amounts, and               
although occasional adverse settlements or resolutions may              
occur and negatively impact earnings in the year of                     
settlement, it is the opinion of management that their                  
ultimate resolution will not have a materially adverse effect           
on Tandy's financial position.                                          

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EXECUTIVE OFFICERS OF THE REGISTRANT (SEE ITEM 10 OF PART               
III).                                                                   
The following is a list of Tandy Corporation's executive          
officers, their ages, positions and length of service with              
the Company as of March 30, 1995.                                       

Position                  
          (Date Elected                 Years with
Name              to Current Position)      Age      Company            
----              --------------------      ---    ----------           
John V. Roach     Chairman of the Board,     56        27               
Chief Executive Officer             
and President (July 1982)           

William C.                                                              
Bousquette      Executive Vice President   58         4 (1)         
(January 1994-January 22,           
1995)                               

Dwain H.                                                                
Hughes          Senior Vice President and  47        15 (2)         
Chief Financial Officer             
(January 1995)                      

Robert M.                                                               
McClure         Senior Vice President -    59        22 (3)         
Tandy Retail Services               
(January 1994)                      

Herschel C.                                                             
Winn            Senior Vice President      63        26             
and Secretary                       
(November 1979)                     

Mark W.                                                                 
Barfield        Vice President - Tax       37         7 (4)         
(May 1994)                          

Lou Ann                                                                 
Blaylock        Vice President -           56        24 (5)         
Corporate Relations                 
(January 1993)                      

Frederick W.                                                            
Padden          Vice President - Law       62         4 (6)         
and Assistant Secretary             
(January 1994)                      

Ronald L.                                                               
Parrish         Vice President -           52         8             
Corporate Development               
(April 1987)                        

Richard L.                                                              
Ramsey          Vice President and         49        28             
Controller (January 1986)           

Leonard H.                                                              
Roberts         President of Radio Shack   46         1 (7)         
(July 1993)                         

There are no family relationships among the executive             
officers listed and there are no arrangements or                        
understandings pursuant to which any of them were appointed             
as executive officers.  All executive officers of Tandy                 
Corporation are elected by the Board of Directors annually to           
serve for the ensuing year, or until their successors are               
elected.  All of the executive officers listed above have               
served the Company in various capacities over the past five             
years, except for Messrs.  Bousquette, Padden and Roberts.              

(1)  Mr. Bousquette served as Executive Vice President and              
Chief Financial Officer of the Company from November          
1990 to  January 1993 and from January 1994 to December       
1994.  He served as Executive Vice President only from        
January 1, 1995 to January 22, 1995 when he resigned as       
an employee of the Company.  He served as Chief               
Executive Officer of TE Electronics Inc. from January         
1993 to January 22, 1995. Prior to joining Tandy, he          
served as Executive Vice President and Chief Financial        
Officer of Emerson Electric Company from March 1984           
until November 1990.                                          

(2)  Mr. Hughes was elected Senior Vice President and Chief             
Financial Officer of the Company effective January 1,         
1995.  Mr. Hughes served as Vice President and Treasurer      
of the Company from June 1991 until December 1994.  From      
June 1989 until June 1991, Mr. Hughes was Assistant           
Treasurer of the Company.                                     

(3)  Mr. McClure served as President of the Tandy Electronics           
Division from August 1987 until January 1993 when he was      
elected as Chief Operating Officer and President of TE        
Electronics Inc. On January 1, 1994, Mr. McClure was          
named Senior Vice President - Tandy Retail Services.          

(4)  Mr. Barfield served as Director of Federal and                     
International Taxes from April 1991 through May 1994          
when he was named Vice President - Tax.  From January         
1988 through April 1991 he was the Federal Income Tax         
Manager for the Company.                                      

(5)  Mrs. Blaylock was Director of Corporate Relations from             
January 1986 until she was named Vice President -             
Corporate Relations in January 1993.                          

(6)  Mr. Padden has been the Vice President - Law of the                
Company since January 1994 and has been Vice President        
and Secretary of TE Electronics Inc. since January 1993.      
From January 1991 to January 1993 he was the Deputy           
General Counsel - Intellectual Property for Tandy             
Corporation.  Prior to joining Tandy he was a General         
Attorney at AT&T-Bell Laboratories from 1984 to January       
1991.                                                         

(7)  Mr. Roberts became President of the Radio Shack Division           
on July 7, 1993.  Prior to joining Tandy he served as         
the Chairman and Chief Executive Officer of Shoney's,         
Inc. from 1990 to 1993.                                       

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PART II           

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND                  
RELATED STOCKHOLDER MATTERS.                          

MARKET FOR COMMON STOCK                                                 
The Company's common stock is listed on the New York Stock        
Exchange and trades under the symbol "TAN".  The following              
table presents the high and low sale prices for the Company's           
common stock for each quarter of the two years ended December           
31, 1994.                                                               

                                     Dividends
Quarter Ended:           High     Low    Close    Declared              
          -------  ------  -------   ---------
December 31, 1994    $50 5/8  $41     $50 1/8     $.18              
September 30,1994     43 7/8   33 3/8  43          .15              
June 30, 1994         38 5/8   30 3/4  34 1/2      .15              
March 31, 1994        49 7/8   35 1/4  36 1/4      .15              
December 31, 1993     50 3/4   35 3/8  49 1/2      .15              
September 30,1993     37 3/8   28 1/8  36 7/8      .15              
June 30, 1993         32 3/8   28 3/8  30          .15              
March 31, 1993        32 1/8   24 5/8  29 5/8      .15              

HOLDERS OF RECORD                                                       
At March 21, 1995 there were 33,672 holders of record of          
the Company's common stock.                                             

DIVIDENDS                                                               
The Board of Directors periodically reviews the Company's         
dividend policy.  On December 16, 1994, the Board of                    
Directors approved a quarterly dividend of $0.18 per common             
share, which represents a 20% increase over the prior                   
quarterly payment of $0.15 per share.                                   

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ITEM 6.  SELECTED FINANCIAL DATA                                                                                           

SELECTED SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)                                                                           
TANDY CORPORATION AND SUBSIDIARIES                                                                                         

<CAPTIONS>                                                                                                                 
(Dollars and shares in              Year Ended              Six Months Ended(1)                                            
thousands, except per              December 31,                 December 31,                    Year Ended June 30,        
                             ----------------------       ----------------------       ------------------------------------
share amounts)                  1994         1993            1992         1991            1992         1991         1990   
---------------------------------------------------------------------------------------------------------------------------
                                                                                                                           
Operations                                                                                                                 
Net sales and                                                                                                              
  operating revenues         $4,943,679   $4,102,551      $2,161,149   $2,031,763      $3,649,284   $3,573,699   $3,648,946
                             ==========   ==========      ==========   ==========      ==========   ==========   ==========
Income before income                                                                                                       
  taxes, discontinued                                                                                                      
  operations and cumulative                                                                                                
  effect of change in                                                                                                      
  accounting principle       $  359,540   $  311,155      $  102,917   $  201,856      $  330,498   $  343,277   $  445,048
Provision for income taxes      135,205      115,523          35,236       73,153         119,785      123,342      167,926
                             ----------   ----------      ----------   ----------      ----------   ----------   ----------
Income from                                                                                                                
  continuing operations         224,335      195,632          67,681      128,703         210,713      219,935      277,122
Income (loss) from                                                                                                         
  discontinued operations            --     (111,797)        (63,875)      (8,060)        (26,866)     (13,872)      13,225
                             ----------   ----------      ----------   ----------      ----------   ----------   ----------

Income before cumulative                                                                                                   
  effect of change in                                                                                                      
  accounting principle          224,335       83,835           3,806      120,643         183,847      206,063      290,347
Cumulative effect on prior                                                                                                 
  years of change in                                                                                                       
  accounting principle(2)            --       13,014              --           --              --      (10,619)          --
                             ----------   ----------      ----------   ----------      ----------   ----------   ----------

Net income                   $  224,335   $   96,849      $    3,806   $  120,643      $  183,847   $  195,444   $  290,347
                             ==========   ==========      ==========   ==========      ==========   ==========   ==========

Net income available per                                                                                                   
  average common and                                                                                                       
  common equivalent share:                                                                                                 
Income from                                                                                                                
  continuing operations      $     2.91   $     2.50      $     0.87   $     1.61      $     2.61   $     2.75   $     3.38
Income (loss) from                                                                                                         
  discontinued operations            --        (1.48)          (0.85)       (0.10)          (0.34)       (0.17)        0.16
                             ----------   ----------      ----------   ----------      ----------   ----------   ----------
Income before cumulative                                                                                                   
  effect of change in                                                                                                      
  accounting principle             2.91         1.02            0.02         1.51            2.27         2.58         3.54
Cumulative effect on prior                                                                                                 
  years of change in                                                                                                       
  accounting principle               --         0.17              --           --              --        (0.14)          --
                             ----------   ----------      ----------   ----------      ----------   ----------   ----------
Net income available per                                                                                                   
  average common and                                                                                                       
  common equivalent share(3) $     2.91   $     1.19      $     0.02   $     1.51      $     2.27   $     2.44   $     3.54
                             ==========   ==========      ==========   ==========      ==========   ==========   ==========

Average common and                                                                                                         
  common equivalent                                                                                                        
  shares outstanding (3)         74,874       75,543          74,918       78,149          78,788       78,258       81,943
Dividends declared per                                                                                                     
  common share               $     0.63   $     0.60      $     0.30   $     0.30      $     0.60   $     0.60   $     0.60
Ratio of earnings to fixed                                                                                                 
   charges (4)                     4.56         3.89            2.83          N/A            3.95         3.55         4.77
                                                                            
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SELECTED SUPPLEMENTAL FINANCIAL DATA (UNAUDITED)                                                                              
TANDY CORPORATION AND SUBSIDIARIES                                                                                            

<CAPTIONS>                                                                                                                    
(Dollars and shares in              Year Ended         Six Months Ended(1)                                                    
thousands, except per              December 31,           December 31,                           Year Ended June 30,          
                             ----------------------       ------------                 ------------------------------------   
share amounts)                  1994         1993             1992                         1992         1991         1990     
---------------------------------------------------------------------------------------------------------------------------   
                                                                                                                              
Year-End Financial Position                                                                                                   
Inventories                  $1,504,324   $1,276,302      $1,472,365                   $1,391,295   $1,301,854   $1,452,065   
Total assets (5)             $3,243,774   $3,219,099      $3,381,428                   $3,165,164   $3,078,145   $3,239,980   
Working capital              $1,350,110   $1,128,343      $1,478,041                   $1,556,435   $1,550,848   $1,312,517   
Current ratio                 2.12 to 1    2.09 to 1       2.39 to 1                    2.99 to 1    3.18 to 1    2.12 to 1   
Capital structure:                                                                                                            
Current debt                 $  229,135   $  387,953      $  385,706                   $  231,097   $  179,818   $  695,871   
Long-term debt               $  153,318   $  186,638      $  322,778                   $  357,525   $  427,867   $  252,540   
Total debt                   $  382,453   $  574,591      $  708,484                   $  588,622   $  607,685   $  948,411   
Total debt, net of cash                                                                                                       
  and short-term                                                                                                              
  investments                $  176,820   $  361,356      $  595,858                   $  482,168   $  421,392   $  813,214   
Stockholders' equity (5)     $1,850,211   $1,950,750      $1,888,351                   $1,930,740   $1,846,762   $1,723,496   
Total capitalization (5)     $2,232,664   $2,525,341      $2,596,835                   $2,519,362   $2,454,447   $2,671,907   
Long-term debt as a % of                                                                                                      
  total capitalization             6.9%         7.4%           12.4%                        14.2%        17.4%         9.5%   
Total debt as a % of total                                                                                                    
  capitalization                  17.1%        22.8%           27.3%                        23.4%        24.8%        35.5%   
Stockholders' equity per                                                                                                      
  common share (6)           $    26.02   $    25.46      $    24.95                   $    25.57   $    23.48   $    21.78   

Financial Ratios                                                                                                              
Return on average                                                                                                             
  stockholders' equity (4)        11.8%        10.2%            3.5%                        11.2%        12.3%        15.8%   
Percent of sales:                                                                                                             
Income before income taxes,                                                                                                   
  discontinued operations and                                                                                                 
  cumulative effect of change                                                                                                 
  in accounting principle          7.3%         7.6%            4.8%                         9.0%         9.6%        12.2%   
Income from continuing                                                                                                        
  operations                       4.6%         4.8%            3.2%                         5.7%         6.2%         7.6%   

<FN>                                                                                                                          
(1) The Company changed its fiscal year-end from June 30 to December 31 effective with the six-month transition period ended  
    December 31, 1992.                                                                                                        
(2) See Note 2 of the Notes to Consolidated Financial Statements for a discussion of the 1993 change in accounting principle. 
    The change in fiscal 1991 reflected the Company's change in accounting for extended service contracts to comply with FASB 
    Technical Bulletin 90-1.                                                                                                  
(3) Per share amounts and the weighted average number of shares outstanding for the year ended December 31, 1993, the         
    six-month period ended December 31, 1992 and for the fiscal year ended June 30, 1992, have been retroactively restated to 
    reflect the PERCS conversion into approximately 11,816,000 common shares in lieu of the prior year assumption of          
    12,457,000 shares which was based on the December 31, 1993 common stock price.                                            
(4) Computed using income from continuing operations.                                                                         
(5) Includes investment in discontinued operations.                                                                           
(6) At December 31, 1994, December 31, 1993, December 31, 1992 and June 30, 1992, computed giving effect to the pending Series
    C PERCS conversion into approximately 11,816,000 shares of common stock.                                                  
                                                                            
ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF             
OPERATIONS AND FINANCIAL CONDITION.                   

Tandy Corporation ("Tandy" or the "Company") changed its          
fiscal year end from June 30 to December 31 effective                   
December 31, 1992.                                                      

The following Management's Discussion and Analysis of             
Results of Operations and Financial Condition compares the              
year ended December 31, 1994 with the years ended December              
31, 1993 and June 30, 1992.  Although the years ended                   
December 31, 1993 and June 30, 1992 end at different times of           
the year, management believes that the seasonality of the               
retail business relating to Christmas is so significant that            
it would distort trends and related percentage comparisons to           
sales for the readers if a full year's results were compared            
to the six-month transition period ended December 31, 1992.             
Information for the six months ended December 31, 1992 is               
included in the tables herein for informational purposes                
only.  Significant events occurring during such period are              
described in the respective sections below.                             

                                                            [Enlarge/Download Table]
                                                                                                 
NET SALES AND OPERATING REVENUES                                                                 
<CAPTIONS>                                                                                       
                                            Year Ended             Six Months Ended    Year Ended
                                           December 31,              December 31,       June 30, 
                                    ---------------------------     --------------     ----------
(In thousands)                         1994             1993             1992             1992   
-------------------------------------------------------------------------------------------------
                                                                                                 
Radio Shack                         $2,853,985       $2,712,973       $1,475,968       $2,761,050
Tandy Name Brand                       440,365          486,258          349,133          586,436
Incredible Universe                    381,682          136,119           34,249               --
Computer City                        1,184,152          626,222          187,745           94,231
                                    ----------       ----------       ----------       ----------
                                     4,860,184        3,961,572        2,047,095        3,441,717
Import/Export and Other Sales           83,495          140,979          114,054          207,567
                                    ----------       ----------       ----------       ----------
                                    $4,943,679       $4,102,551       $2,161,149       $3,649,284
                                    ==========       ==========       ==========       ==========
                                                                            
For the year ended December 31, 1994, Tandy's sales               
increased 21% to $4,943,679,000 from $4,102,551,000 for the             
year ended December 31, 1993.  The increase in sales was                
primarily attributable to the addition of six Incredible                
Universe(R) and 29 Computer City(R) stores during 1994.  A              
net increase of 45 company-owned Radio Shack(R) stores also             
contributed to the sales increase.  Partially offsetting                
these upward trends in sales was an overall decline in sales            
for Tandy Name Brand.  This decline can be partially                    
attributed to the fact that 110 McDuff(R) and                           
VideoConcepts(R) stores were closed during February 1993.               
See "Provision for Business Restructuring" below for further            
discussion of Tandy Name Brand.                                         

Tandy posted a 5% same store sales increase with all              
divisions showing same store increases during the year.                 
Radio Shack and Computer City achieved same store sales                 
increases of 5% while the Tandy Name Brand group was only up            
slightly.  Radio Shack same store sales increases continue to           
be attributable to its focus on its core business (i.e.                 
consumer electronics, cellular telephones, parts and                    
accessories) which have higher margins versus personal                  
computers which have smaller margins.  Incredible Universe,             
with three old stores, experienced a 20% comparable stores              
sales gain during calendar 1994.  Same store sales increases            
reflect growing demand for consumer electronics amid a strong           
economy.                                                                

During 1994, Tandy and InterTAN Inc. ("InterTAN") entered         
into a new import/export agreement under which Tandy's A&A              
operations would act as InterTAN's agent in importing                   
consumer electronics from the Far East.  Commencing in March            
1994, only the purchasing agent commission and sales made by            
Tandy manufacturing plants to InterTAN were recorded as                 
sales.  InterTAN purchases from third parties through A&A are           
no longer recorded as sales, reflecting the arrangement under           
the new merchandise agreement; however, commission income is            
reported as operating revenue.  Accordingly, reported sales             
by Tandy to InterTAN in 1994, reflected in Import/Export and            
Other Sales, were considerably lower than in 1993, however,             
the earned income relating thereto was not materially                   
different.  See the discussion in the "InterTAN Update" found           
below.                                                                  

For the year ended December 31, 1993, overall sales grew          
12% to $4,102,551,000 as compared to $3,649,284,000 for the             
fiscal year ended June 30, 1992.  This increase was primarily           
due to the opening of three Incredible Universe stores and              
the expansion of the Computer City store chain.  Computer               
City sales increases were the result of 25 additional stores            
since June 30, 1992 and comparable store sales gains at old             
stores in excess of 30% for the year ended December 31, 1993.           
Tandy Name Brand experienced a sales decrease in calendar               
1993 as compared to the June 1992 fiscal year.  This decrease           
was primarily a result of the closing of 110 McDuff and                 
VideoConcepts stores in February 1993.  This decline was                
offset by the addition of three Incredible Universe stores.             
The first two Incredible Universe stores were opened in the             
fall of 1992, and the third was added in the fall of 1993.              
Shipments to InterTAN decreased for calendar year 1993 as               
compared to the fiscal year ended June 30, 1992.  On a                  
comparable store basis, Radio Shack's sales increased                   
slightly during the year ended December 31, 1993, as compared           
to the fiscal year ended June 30, 1992.  A moderate increase            
in sales of Radio Shack's core business was offset by a                 
decline in sales of personal computers through the Radio                
Shack division.                                                         

The decrease in Radio Shack's computer business reflects          
the impact of sharply lower pricing in response to                      
competitive pressures in the marketplace.  The changing                 
dynamics of the personal computer business had a significant            
impact on Radio Shack's performance during 1993 and fiscal              
1992, and to a lesser extent in 1994.  A combination of                 
shifts in competitive retail distribution to superstores and            
telemarketing combined with rapidly declining prices has                
taken the computer category from approximately 17.0% of Radio           
Shack's sales with a gross profit of approximately 29.0% in             
the year ended June 30, 1992, to approximately 12.0% of sales           
and a gross profit of approximately 13.7% for the year ended            
December 31, 1994.  Radio Shack's extensive assortment of               
electronic parts, accessories and specialty items                       
differentiates it from other consumer electronics retailers             
in the marketplace.  The table below shows the breakdown by             
major category of Radio Shack sales.                                    

                                                            [Enlarge/Download Table]
                                                                                                 
RADIO SHACK SALES TO CUSTOMERS                                                                   
<CAPTIONS>                                                                                       
                                                      Percent of Total Sales                     
                                    -------------------------------------------------------------
                                            Year Ended             Six Months Ended    Year Ended
                                           December 31,              December 31,       June 30, 
                                    ---------------------------     --------------     ----------
Class of Products                      1994             1993             1992             1992   
-------------------------------------------------------------------------------------------------
                                                                                                 
Consumer electronics                   45.4%            44.6%            46.1%            43.9%  
Electronic parts, accessories                                                                    
  and specialty equipment              36.0             36.1             35.4             34.4   
Personal computers, peripherals,                                                                 
  software and accessories             12.0             14.2             14.3             17.0   
Other                                   6.6              5.1              4.2              4.7   
                                      ------           ------           ------           ------  
                                      100.0%           100.0%           100.0%           100.0%  
                                      ======           ======           ======           ======  
                                                                            
                                                            [Enlarge/Download Table]
                                                                                                                             
RETAIL OUTLETS                                                                                                               
<CAPTIONS>                                                                                                                   
                                          Average                                                                            
                                           Store                                                                             
                                            Size        Dec.31,     Dec.31,     Dec.31,    June 30,                          
                                          (Sq. Ft.)      1994        1993        1992        1992                            
---------------------------------------------------------------------------------------------------                          
                                                                                                                             
Radio Shack                                                                                                                  
  Company-owned                            2,350        4,598       4,553       4,558       4,553                            
  Dealer/Franchise                          N.A.        2,005       2,002       2,122       2,203                            
                                                        -----       -----       -----       -----                            
                                                        6,603       6,555       6,680       6,756                            
                                                        -----       -----       -----       -----                            
Tandy Name Brand                                                                                                             
  McDuff Supercenters(1)                  12,300           71          75         150         151                            
  McDuff/VideoConcepts Mall Stores(1)      3,100          219         231         266         266                            
  The Edge in Electronics                  1,100           16          16          16          16                            

Computer City                             22,800           69          40          20          15                            
Incredible Universe                      184,000            9           3           2          --                            
                                                        -----       -----       -----       -----                            
                                                          384         365         454         448                            
                                                        -----       -----       -----       -----                            
   Total Stores                                         6,987       6,920       7,134       7,204                            
                                                        =====       =====       =====       =====                            

<FN>                                                                                                                         
(1) In the first quarter of 1995, 151 VideoConcepts, 30 McDuff mall stores and 19 McDuff Supercenters will be closed.        
    In addition, 33 other mall stores or Supercenters will be converted into Radio Shack or Computer City Express(SM) stores.
    See "Provision for Business Restructuring".                                                                              
                                                                            
GROSS PROFIT                                                            
Gross profit as a percent of sales declined in 1994 to            
39.0% from the 1993 level of 41.9%.  This decrease reflects             
the continued expansion of Tandy's lower gross margin retail            
formats.  During calendar year 1994, Computer City and                  
Incredible Universe represented 31.7% of total sales and                
operating revenues compared to 18.6% of the 1993 total.                 
Offsetting the mix of business shift within Tandy are the               
increasing gross margins in Radio Shack in calendar 1994,               
which continue to benefit from a lower percentage of sales              
related to low margin computer equipment and a higher                   
percentage associated with the sale of higher gross margin              
categories including parts, accessories and consumer                    
electronics.  Management anticipates that Tandy's                       
consolidated gross profit percentage will continue to decline           
as the effects of the Computer City and Incredible Universe             
expansions are increasingly reflected in the gross profit               
mix.                                                                    

Gross profit as a percent of sales and operating revenues         
for the year ended December 31, 1993 was 41.9% as compared to           
43.5% for the six months ended December 31, 1992, and 47.2%             
for the fiscal year ended June 30, 1992.  The decline, in               
part, reflects the faster growth of new high-volume formats             
such as Computer City and Incredible Universe which have                
inherently lower gross margins than Radio Shack stores.                 
Combined Computer City and Incredible Universe sales                    
contributed 18.6%, 8.9% and 2.6% to consolidated sales in the           
year ended December 31, 1993, the six months ended December             
31, 1992 and the year ended June 30, 1992, respectively.                
Competitive pressures in name brand electronics retailing               
decreased Tandy Name Brand's gross margins in each of the               
periods ended December 31, 1993 and 1992 and June 30, 1992.             
Additionally, gross margins were impacted in the Tandy Name             
Brand units by the increasing percentage of sales related to            
the lower margin computer category.                                     

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                            
Selling, general and administrative expenses ("SG&A") as a        
percent of sales and operating revenues for the year ended              
December 31, 1994 declined from the year ended December 31,             
1993, as well as from the year ended June 30, 1992 and from             
the six months ended December 31, 1992.  The accompanying               
table summarizes the breakdown of various components of SG&A            
and their related percentage of sales and operating revenues.           
The lower SG&A percentage reflects the lower costs, relative            
to net sales and operating revenues, of the Company's newer             
retail formats, as well as the operating costs achieved                 
through cost reduction programs.                                        

Specific items impacting year-to-year comparisons are: (1)        
for the year ended December 31, 1993, foreign currency                  
transactions include a $1,796,000 realized loss on the sale             
of the cellular joint ventures; (2) other expenses in                   
calendar 1993 are net of a gain of $6,047,000 on the sale of            
the cellular joint ventures, and (3) in fiscal year 1992, the           
sale of a Japanese subsidiary, the assets of which were                 
primarily real estate, resulted in the recording of a gain of           
$12,093,000 in other SG&A and a foreign currency gain of                
$6,894,000.  The Company's exposure to foreign currency                 
fluctuations has decreased significantly with the divestiture           
of the European marketing operations.                                   

Although payroll and commissions expense has increased in         
dollars, this cost has decreased as a percent of sales and              
operating revenues in the year ended December 31, 1994 as               
compared to the year ended December 31, 1993 and the fiscal             
year ended June 30, 1992.  This is due to the increase in               
Computer City and Incredible Universe sales as a percentage             
of total sales and operating revenues from 2.6% in fiscal               
1992 to 31.7% in 1994; these divisions have an inherently               
lower salary structure when compared to Radio Shack.  In                
addition, Computer City payroll expense as a percent of                 
Computer City sales has decreased from 1993 to 1994, while              
that of the other retail divisions has remained approximately           
the same from year to year.                                             

Advertising costs have decreased as a percent of sales and        
operating revenues in the year ended December 31, 1994 as               
compared to the year ended December 31, 1993 and the fiscal             
year ended June 30, 1992.  Management has focused its efforts           
on more efficient advertising methods for Radio Shack                   
utilizing the Company's database of customer activity to                
reduce costs while maintaining market awareness.  Advertising           
costs increased in dollars compared to the prior year as new            
Computer City and Incredible Universe stores opened and Radio           
Shack shifted its marketing program to electronic media.  The           
Company currently spends approximately 30% of its advertising           
funds for television and radio commercials, compared to 20%             
in previous years.  Radio Shack's advertising spots have been           
shifted from sports-related events to prime-time shows in               
order to reach a broader audience.                                      

Rent expense has increased slightly in dollars but                
decreased as a percent of sales during the year ended                   
December 31, 1994 as compared to the year ended December 31,            
1993.  The increase in rent expense is due a net increase of            
45 Radio Shack stores and the addition of 29 Computer City              
stores and six Incredible Universe stores.  Incredible                  
Universe and Computer City formats typically have lower rent,           
as a percent of sales, than Tandy overall.  As a percent of             
sales, rent decreased from fiscal 1992 in comparison with               
that for the year ended December 31, 1993 resulting in part             
from Computer City's lower rent to sales ratio.                         

Other SG&A costs have increased over that of the prior            
year due to several factors, including an increase in                   
discount fees paid to third party bank cards because of both            
increased sales in the Computer City and Incredible Universe            
formats and an increase in credit card sales as a percent of            
sales.  Further, Radio Shack merchandise repair expenses                
increases of $8,261,000 primarily reflected an increase in              
extended service plan sales.  The change in other SG&A also             
reflects the $6,047,000 gain noted above on the 1993 sale of            
the Company's interests in two cellular telephone                       
manufacturing joint ventures and an increase in legal and               
attorney fees of $4,671,000 in 1994.                                    

The Company's credit operations have been successful in           
supporting sales of the retail operations.  Private label               
credit cards represented 35% of credit sales for the year               
ended December 31, 1994, 34% for the year ended December 31,            
1993, 36% for the six months ended December 31, 1992 and 43%            
in fiscal 1992.  This decline in the percentage from 1992               
results from increased sales through the Computer City and              
Incredible Universe stores which have a lower percentage of             
private label credit card usage.  Expenses associated with              
the credit card operations, which are included in SG&A                  
expense, have decreased as a percent of sales due to a                  
decrease in credit losses reflecting a stronger economy.  As            
discussed more fully in Note 3 of the Notes to Consolidated             
Financial Statements, the Company has sold its Computer City            
and Incredible Universe private label credit card portfolios            
and expects in the first half of 1995 to sell its Radio Shack           
and McDuff private label credit card portfolios.  Once                  
completed, the Company will no longer incur bad debt expense            
or servicing costs associated with its private label credit             
cards.  In 1995, the Company will begin to receive a fee from           
the unrelated third party financer of its private label                 
credit card portfolio balance for the generation of normal              
interest bearing accounts, and will pay a fee for the                   
generation of special purpose promotional accounts, such as             
"zero percent interest for twelve months" programs.  See Note           
3 of the Notes to Consolidated Financial Statements for                 
further discussion of the Company's pending disposition of              
its credit operations.                                                  
    
                                                        [Enlarge/Download Table]
                                                                                                             

SUMMARY OF SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                                                      

<CAPTIONS>                                                                                                   
                                          Year Ended                   Six Months Ended        Year Ended    
                                         December 31,                     December 31,          June 30,     
                           ----------------------------------------------------------------------------------
                                   1994                 1993                 1992                 1992       

                                       % of                 % of                 % of                 % of   
                                      Sales &              Sales &              Sales &              Sales & 
(In thousands)               Dollars  Revenues    Dollars  Revenues    Dollars  Revenues    Dollars  Revenues
-------------------------------------------------------------------------------------------------------------
                                                                                                             
Payroll and commissions    $  627,307   12.7%   $  554,728   13.5%   $  288,057   13.3%   $  534,779   14.7% 
Advertising                   224,212    4.5%      205,831    5.0%      150,374    7.0%      239,352    6.6% 
Rent                          212,422    4.3%      202,401    4.9%      105,328    4.9%      204,673    5.6% 
Other taxes                    89,488    1.8%       79,508    1.9%       38,198    1.8%       73,701    2.0% 
Utilities and telephone        67,398    1.4%       62,437    1.5%       31,197    1.4%       61,468    1.7% 
Insurance                      51,090    1.0%       45,373    1.1%       26,301    1.2%       44,427    1.2% 
Stock purchase                                                                                               
  and savings plans            21,031    0.4%       17,562    0.4%        7,749    0.3%       15,396    0.4% 
Foreign currency                                                                                             
  transactions gains           (1,495)    --          (762)    --        (3,065)  -0.1%      (10,642)  -0.3% 
Other                         184,392    3.8%      131,684    3.3%       78,845    3.6%      119,893    3.3% 
                           ----------   -----   ----------   -----   ----------   -----   ----------   ----- 
  Subtotal                  1,475,845   29.9%    1,298,762   31.6%      722,984   33.4%    1,283,047   35.2% 
Credit operations              56,828    1.1%       55,914    1.4%       38,815    1.8%       59,073    1.6% 
                           ----------   -----   ----------   -----   ----------   -----   ----------   ----- 
                           $1,532,673   31.0%   $1,354,676   33.0%   $  761,799   35.2%   $1,342,120   36.8% 
                           ==========   =====   ==========   =====   ==========   =====   ==========   ===== 

                                                                            
DEPRECIATION AND AMORTIZATION                                           
Depreciation and amortization expense as a percent of             
sales and operating revenues decreased slightly in the year             
ended December 31, 1994 as compared with the year ended                 
December 31, 1993 and the fiscal year ended June 30, 1992.              
The dollar amount of depreciation and amortization expense              
for the year ended December 31, 1994 increased 6% over the              
dollar amount for the year ended December 31, 1993 and 14%              
over that for the year ended June 30, 1992.  The increase is            
due to additional capital expenditures related to the six               
Incredible Universe stores added in 1994, and the addition of           
29 Computer City stores this year.  Three Incredible Universe           
stores and 25 Computer City stores were added from June 30,             
1992 to December 31, 1993, thereby increasing depreciation              
and amortization from fiscal 1992 to calendar 1993.                     

NET INTEREST (INCOME)/EXPENSE                                           
Net interest income was $48,565,000 for the year ended            
December 31, 1994, $25,831,000 for the year ended December              
31, 1993 and $24,245,000 for the fiscal year ended June 30,             
1992.  Interest income in all three years is primarily                  
attributable to the Company's credit card operations;                   
however, in fiscal 1994 the Company also received interest              
income from the IRS reflecting the settlement of outstanding            
tax issues of approximately $9,582,000, and interest income             
earned on notes receivable from AST Research Inc. and                   
InterTAN which approximated $5,724,000 and $8,280,000,                  
respectively.  Increased short-term investments resulted from           
proceeds received from the divestiture of discontinued                  
manufacturing and marketing operations, as well as from cash            
provided by operating activities.  Interest income as it                
relates to the AST Research Inc. and InterTAN notes                     
receivable is expected to continue in fiscal 1995.  See                 
further discussion on notes receivable in the "InterTAN                 
Update" and "Discontinued Operations" sections of                       
Management's Discussion and Analysis below.                             

Interest income from credit operations was $46,868,000 for        
the year ended December 31, 1994, $57,401,000 for the year              
ended December 31, 1993 and $62,307,000 for the fiscal year             
ended June 30, 1992.  Interest income from the credit card              
company has decreased in the last three years as a result of            
increased use of certain special sales promotions and                   
marketing initiatives, some of which provide for no interest            
charges for specified initial periods.  The decline in                  
average credit card receivables results from increased                  
payments from credit customers reflecting the overall                   
improvement in the economy and a desire by consumers to shift           
debt to lower interest rate instruments.  Due to the December           
1994 sale of the Computer City and Incredible Universe credit           
card portfolios, the Company will no longer include any                 
interest income from these portfolios.  Since the sale, at              
net book value, of the Radio Shack and McDuff portfolios is             
contingent upon and subject to regulatory and rating agency             
approvals, the Company will continue to include interest                
income from these portfolios until final approval is received           
and the sale is completed.  This sale is expected to close in           
the first half of 1995.                                                 

The decrease in interest expense for the year ended               
December 31, 1994 as compared to the years ended December 31,           
1993 and June 30, 1992 is due to the decrease of total debt             
and lower U.S. interest rates.  Short-term debt has decreased           
41% and long-term debt has decreased 18% from December 31,              
1993 due to the repayment of debt such as subordinated                  
debentures, medium-term notes and commercial paper.  The                
Company expects overall interest expense to increase in 1995            
as compared to interest expense in 1994.  As the Company                
receives cash proceeds from the sale of its credit                      
operations, it will apply a significant portion of such                 
proceeds to the repayment of short-term debt, for store                 
expansion and to fund its 12,500,000 share repurchase                   
program, of which approximately 5,000,000 shares had been               
repurchased as of December 31, 1994.                                    

PROVISION FOR BUSINESS RESTRUCTURING                                    
In December 1994, the Company adopted a business                  
restructuring plan to close or convert 233 of the 306 Tandy             
Name Brand stores.  Closed stores will include 151                      
VideoConcepts, 30 McDuff mall stores and 19 McDuff                      
Supercenters.  Thirty-three other mall stores or McDuff                 
Supercenters will be converted to Radio Shack or Computer               
City Express stores.  It is anticipated that a majority of              
these planned closures will be completed by the end of the              
first quarter of 1995.  Approximately 57 McDuff Supercenters            
and 16 The Edge in Electronics stores will remain open and              
will become part of the Specialty Retail Group of Radio                 
Shack.  A pre-tax charge of $89,071,000 was taken in the                
fourth quarter of fiscal 1994 related to the closing and                
conversion of these stores.  The components of the                      
restructuring charge and an analysis of the amounts charged             
against the reserve are outlined in a table in Note 4 of the            
Notes to Consolidated Financial Statements.                             

The lease obligations, termination benefits and conversion        
of 33 stores will require cash outlays, most of which are               
expected to be made during 1995.  The cash outlays will be              
financed by operating cash flows.  Management anticipates               
that pre-tax operating losses during the period of store                
closures will approximate $6,000,000 to $8,000,000                      
(unaudited).                                                            

Sales and operating revenues associated with the closing          
of Tandy Name Brand stores were approximately $261,990,000              
(unaudited) and $271,914,000 (unaudited) for calendar years             
1994 and 1993, respectively, and operating losses                       
approximated $18,125,000 (unaudited) and $15,342,000                    
(unaudited) for calendar 1994 and 1993, respectively.  During           
the fiscal year ended June 30, 1992, sales and operating                
revenues and operating losses from the closing stores were              
approximately $254,531,000 (unaudited) and $10,169,000                  
(unaudited), respectively.  The results of the closing stores           
for the six months ended December 31, 1992 are not presented            
because, due to the seasonal nature of the stores'                      
operations, such results would not be comparable to any of              
the twelve-month results for the other periods presented.  In           
conjunction with this restructuring, 1,425 (unaudited)                  
employees will be terminated, most of which are store                   
employees and managers.  As of December 31, 1994, no                    
employees had been terminated and, accordingly, no                      
termination benefits had been paid.                                     

The Company adopted a plan resulting in business                  
restructuring charges during the six months ended December              
31, 1992 designed to improve the Company's competitiveness              
and future profitability.  The pre-tax charge of $48,000,000            
related primarily to the closing of 110 of the then 432 Tandy           
Name Brand stores, mainly McDuff Supercenters in major market           
areas and, to a lesser extent, the elimination of certain               
product lines.  Some product lines were reduced or eliminated           
after consideration of competitive factors and market trends.           
These stores were closed in the first quarter of 1993.                  

GAIN ON SALE OF CREDIT OPERATIONS AND EXTENDED SERVICE                  
CONTRACTS                                                           
In December 1994 the Company entered into an agreement            
with SPS Transaction Services, Inc., a majority-owned                   
subsidiary of Dean Witter, Discover & Company ("SPS") to sell           
its Computer City and Incredible Universe private label                 
credit card portfolios without recourse.  As a result of the            
agreement, in which Tandy received cash of $85,764,000 and              
will receive a deferred payment of $179,777,000, the Company            
recognized a gain of $35,708,000 in the accompanying                    
Consolidated Statements of Income. The deferred payment                 
amount does not bear interest.  Principal will be paid                  
monthly with the total principal amount of $179,777,000 due             
over a twelve month period.  The Company has discounted the             
deferred payment by $3,477,000 to yield approximately 5% over           
the twelve month payout period.  As a result, the discounted            
deferred payment amount of $176,300,000 is classified as                
current in the accompanying Consolidated Balance Sheet at               
December 31, 1994.  The Company also signed a letter of                 
intent to sell its Radio Shack and McDuff private label                 
credit card portfolios at net book value and without recourse           
to SPS in 1995, including the rights to the securitized                 
accounts (see Note 6 of the Notes to Consolidated Financial             
Statements).  The agreement for the sale of McDuff and Radio            
Shack portfolios was completed in January 1995, subject only            
to regulatory and rating agency approval which should be                
forthcoming in the first half of 1995.  Tandy anticipates               
receiving approximately $290,000,000 (unaudited) cash and a             
deferred payment approximating $80,000,000 (unaudited), on              
terms similar to the deferred payment arrangement mentioned             
above.                                                                  

Tandy National Bank (the "Bank"), a limited purpose               
nationally chartered credit card bank, was established on May           
11, 1994.  The Bank, a wholly-owned subsidiary of Tandy, was            
created to operate the consumer credit card programs for                
Tandy.  All new accounts approved after May 12, 1994 were               
originated and owned by the Bank.  After the Company's sale             
of the private label credit card portfolios, the Bank will              
cease operations.                                                       

Effective December 1994, the Company transferred all of           
its existing obligations with respect to extended service               
contracts in force at December 31, 1994, with the exception             
of certain contracts aggregating approximately $7,734,000, to           
an unrelated third party.  The unrelated third party                    
contractually assumed all of the Company's legal obligations            
and risk of future loss pursuant to the extended service                
contracts in exchange for $75,059,000, of which $70,702,000             
was paid in December 1994 and $4,357,000 was paid in February           
1995.  As a result, the Company has recognized a gain of                
$55,729,000 associated with this transaction in its                     
accompanying Consolidated Statements of Income.  The Company            
will continue to provide repair services to customers who               
tender products pursuant to the extended service contracts on           
a non-exclusive basis.  The unrelated third party will pay              
the Company competitive market rates for repairs on products            
tendered pursuant to the extended service contracts.                    

The Company will continue to sell extended service                
contracts on behalf of the unrelated third party and will               
receive a commission upon the sale.  The commission will be             
recognized as commission income at the time of sale.                    

PROVISION FOR INCOME TAXES                                              
The effective tax rate for the year ended December 31,            
1994 was 37.6% and was 37.1% for the year ended December 31,            
1993.  The higher effective tax rates for these two years as            
compared to 36.2% for the year ended June 30, 1992 reflects             
the impact of the increase of the federal tax rate to 35%               
from 34% which was effective January 1, 1993.  The effective            
tax rate for the six-month period ended December 31, 1992 was           
34.2%.  This lower effective rate reflects the successful               
resolution of certain IRS examinations during the period.               

The IRS Dallas field office is reviewing the Company's            
1987-1989 tax returns.  The review in Dallas could lead to              
referral to the IRS National office.  The resolution of this            
matter could result in additional taxes and interest to the             
Company related to the spin-off of InterTAN and raises                  
questions about the private letter rulings issued by the IRS            
regarding the spin-off and certain other tax matters.                   
Although aggregate additional taxes involved in these                   
transactions could potentially range from $0 to $46 million,            
based on the advice of the Company's independent tax                    
advisors, the Company believes it would prevail if any tax              
litigation had to be instituted.  Any ultimate tax assessment           
would also include interest.  In any event, the Company                 
believes the ultimate resolution would have no material                 
impact on the Company's financial condition.                            

Financial Accounting Standard No. 109, "Accounting for            
Income Taxes", which the Company adopted January 1, 1993, is            
discussed in Note 12 of the Notes to Consolidated Financial             
Statements.                                                             

DISCONTINUED OPERATIONS                                                 
On June 25, 1993, the Board of Directors of Tandy adopted         
a formal plan of divestiture under which the Company would              
sell its computer manufacturing and marketing businesses, the           
O'Sullivan Industries, Inc. ("O'Sullivan") ready-to-assemble            
furniture manufacturing and related marketing business, the             
Memtek Products division and the Lika printed circuit board             
business.                                                               

Computer Manufacturing.  The Company closed the sale of       
the computer manufacturing and marketing businesses to AST        
Research, Inc. ("AST") on July 13, 1993.  In accordance           
with the terms of the definitive agreement between Tandy          
and AST, Tandy received $15,000,000 upon closing of the           
sale.  The balance of the purchase price of $90,000,000           
is payable by a promissory note.  The principal amount of         
this promissory note is payable by July 12, 1996; interest        
is accrued and paid annually.  The interest rate on the           
promissory note is currently 4.94% per annum and is               
adjusted annually, not to exceed 5% per annum.  The terms         
of the promissory note stipulate that the outstanding             
principal balance may be paid at maturity at AST's option         
in cash or the common stock of AST.  However, at Tandy's          
option not more than 50% of the initial principal balance         
may be paid in common stock of AST.  The promissory note          
is supported by a standby letter of credit in the amount          
of the lesser of $100,000,000 or 70% of the outstanding           
principal amount of the promissory note.  At December 31,         
1994, the standby letter of credit approximated                   
$67,704,000.                                                      

In October 1993, the Company sold its computer              
marketing operations in France to AST, together with              
certain other multimedia assets and additional Swedish            
inventory, in return for an increase in the principal             
amount of the promissory note described above to                  
$96,700,000.  The Company has discounted this note by             
$2,000,000 and the discount will be recognized as interest        
using the effective interest rate method over the life of         
the note.                                                         

Memtek Products.  On November 10, 1993, the Company         
executed a definitive agreement with Hanny Magnetics              
(B.V.I.) Limited, a British Virgin Islands corporation            
("Hanny"), to purchase certain assets of the Company's            
Memtek Products operations, including the license                 
agreement with Memorex Telex, N.V. for the use of the             
Memorex trademark on licensed consumer electronics                
products.  This sale closed on December 16, 1993.  Hanny          
is a subsidiary of Hanny Magnetics (Holdings) Limited, a          
Bermuda corporation, listed on the Hong Kong Stock                
Exchange.  Proceeds from this sale aggregated $69,602,000.        
The $7,102,000 receivable which remained at December 31,          
1993 was paid in 1994.                                            

O'Sullivan Industries.  On January 27, 1994 the Company     
announced that it had reached an agreement with the               
underwriters to sell all the common stock of O'Sullivan           
Industries Holdings, Inc., the parent company of                  
O'Sullivan, to the public at $22 per share.  The net              
proceeds realized by Tandy in the initial public offering,        
together with a $40,000,000 cash dividend from O'Sullivan,        
approximated $350,000,000.  The initial public offering           
closed on February 2, 1994.                                       

Tandy has recognized income of approximately                
$4,399,000, net of tax, during the year ended December 31,        
1994, pursuant to a Tax Sharing and Tax Benefit                   
Reimbursement Agreement between Tandy and O'Sullivan under        
which Tandy receives payments from O'Sullivan                     
approximating the federal tax benefit that O'Sullivan             
realizes from the increased tax basis of its assets               
resulting from the initial public offering.  The higher           
tax basis increases O'Sullivan's tax deductions and,              
accordingly, reduces income taxes payable by O'Sullivan.          
These payments will be made over a 15-year time period and        
are contingent upon O'Sullivan's taxable income each year.        
The Company is recognizing these payments as additional           
sale proceeds and gain in the year in which the payments          
become due and payable to the Company pursuant to the Tax         
Sharing and Tax Benefit Reimbursement Agreement.  The             
additional gain is recorded as a reduction of SG&A expense        
in the accompanying Consolidated Statements of Income.            

Lika.  On October 11, 1994, Tandy sold the assets used      
in its Lika(R) printed circuit board division to Viktron          
Limited Partnership, an Illinois limited partnership.  The        
proceeds from the sale and liquidation of assets                  
approximated $16,380,000 which included $7,754,000 in             
cash, proceeds from liquidation of retained assets of             
$5,594,000 and secured promissory notes for $3,032,000.           

In connection with the computer manufacturing sale, the           
Memtek Products sale and the Lika sale, the Company agreed to           
retain certain liabilities primarily relating to warranty               
obligations on products sold prior to the sale.  Management             
believes that accrued reserves, as reflected on its December            
31, 1994 balance sheet, are adequate to cover estimated                 
future warranty obligations for the products.                           
    
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CASH FLOW AND LIQUIDITY                                                                           
<CAPTIONS>                                                                                        
                                            Year Ended             Six Months Ended    Year Ended 
                                           December 31,              December 31,       June 30,  
                                    ---------------------------     --------------     ---------- 
(In thousands)                         1994             1993             1992             1992    
------------------------------------------------------------------------------------------------- 
                                                                                                  
Operating activities                $  268,938       $  322,294       $   13,680       $  146,782 
Investing activities                   239,085          (52,149)         (90,171)        (102,190)
Financing activities                  (515,625)        (169,536)          82,663         (124,431)

                                                                            
Tandy's cash flow and liquidity, in management's opinion,         
remains strong.  During the year ended December 31, 1994,               
cash provided by operations was $268,938,000 as compared to             
$322,294,000 for the year ended December 31, 1993.  The                 
decreased cash flow from operations was due partially to the            
financing of receivables and inventories related to the                 
expansion of Computer City and Incredible Universe store                
chains.  The increase of $261,071,000 in cash used to fund              
accounts receivable was due primarily to the increase in                
Tandy Credit receivables related to increased retail sales by           
Computer City and Incredible Universe and the use of certain            
special sales promotions and marketing initiatives, some of             
which provide for no interest charges for specified initial             
periods.  Inventory required $156,129,000 more cash in 1994             
than in 1993.  The increase in inventory during 1994 related            
to new store openings and increases in average inventory to             
ensure in-stock positions throughout the Christmas selling              
season.  Partially offsetting the cash used to finance                  
receivables and inventory were the sale of the Computer City            
and Incredible Universe private label credit card portfolios            
which provided cash of $85,764,000 as well as increases in              
accounts payable, accrued expenses and income taxes which               
provided $184,017,000 more cash in 1994 than in 1993.  The              
1994 increase in accounts payable, accrued expenses and                 
income taxes is net of the cash expended, approximating                 
$70,702,000, associated with the transfer of the legal                  
obligation and risk of loss for existing extended service               
contracts to an unrelated third party.                                  

During the year ended December 31, 1993, cash provided by         
operations was $322,294,000 as compared to $146,782,000 for             
the fiscal year ended June 30, 1992.  The increased cash flow           
from operations in calendar 1993 compared to fiscal year                
ended June 30, 1992 was due partially to receivables which              
provided $30,133,000 in cash in 1993 but used $121,719,000 in           
1992.  The decline in accounts receivable in 1993 versus 1992           
was due to the liquidation of receivables related to the                
divested operations and lower consumer receivables related to           
the Company's private label credit card portfolio.  The                 
latter reason reflects consumers' desires to liquidate debt             
with higher interest rates and the overall improved economy.            
Inventory required less cash in calendar 1993 than in fiscal            
1992.                                                                   

Investing activities involved capital expenditures                
primarily for retail expansion totaling $180,559,000 for the            
year ended December 31, 1994, $129,287,000 for the year ended           
December 31, 1993, and $127,495,000 for the year ended June             
30, 1992.  Proceeds from the sale of property, plant and                
equipment in 1994 resulted primarily from a sale-leaseback              
transaction involving certain Incredible Universe stores                
which netted the Company $52,719,000 in cash.  Proceeds                 
received from the sale of divested operations totaled                   
$359,004,000 and $111,988,000 during the years ended December           
31, 1994 and 1993, respectively.  See "Discontinued                     
Operations".  Investing activities in 1993 also included                
$31,663,000 for the purchase of InterTAN's bank debt and the            
extension and funding of a working capital line of credit.              
See "InterTAN Update" for further information.  Future store            
expansions and refurbishments and other capital expenditures            
are expected to approximate $180,000,000 to $200,000,000 per            
year over the next two years and will be funded primarily               
from available cash, cash flow from operations and proceeds             
from the sale of the private label credit card portfolios.              

Purchases of treasury stock used cash of $275,415,000,            
$27,650,000 and $527,773,000 in 1994, 1993 and fiscal 1992,             
respectively.  Increases in treasury stock purchases in 1994            
related primarily to the share repurchase program.  See                 
"Capital Structure and Financial Condition" for further                 
discussion.  Financing activities in fiscal 1992 included the           
February 1992 sale of $2.14 Depositary Shares of the                    
Company's Series C Preferred Equity Redemption Convertible              
Stock ("PERCS") for $429,982,000 and the subsequent purchase            
of common stock with such proceeds.  Sales of treasury stock            
to the Company's Stock Purchase Program generated cash of               
$41,579,000, $42,067,000 and $49,590,000 in 1994, 1993, and             
fiscal 1992, respectively.  Dividends paid, net of tax, in              
1994, 1993 and fiscal 1992 amounted to $74,512,000,                     
$74,873,000 and $56,132,000, respectively.  The increase in             
dividends since fiscal 1992 is mainly the result of dividends           
paid on the PERCS which were issued in fiscal 1992.  As a               
result of the Company calling its PERCS in March 1995, the              
Company will eliminate its dividend payment to the PERCS of             
approximately $32,000,000.  However, it will pay upon                   
conversion a dividend to the PERCS shareholders of                      
approximately $4,815,000.  Preferred stock dividends are                
expected to exceed $11,000,000 in 1995.  The Company plans to           
fund the preferred stock and common stock dividends with                
available cash and cash flow from operations, as well as from           
the proceeds from the sale of its credit card portfolios.               

In 1994 and 1993, the Company decreased short-term                
borrowings by $110,393,000 and $46,885,000, respectively, and           
increased short-term borrowings by $57,533,000 in fiscal                
1992.  The consistent reduction in short-term borrowings has            
been funded primarily by proceeds from the sale of divested             
operations and cash provided by operations.  The Company's              
primary source of short-term debt, for which borrowings and             
repayments have been presented net in the Consolidated                  
Statements of Cash Flows, consists of short-term seasonal               
bank debt and commercial paper.  The commercial paper matures           
within ninety days as does the short-term seasonal bank debt.           

Following are the current credit ratings for Tandy            
Corporation, which are investment grade:                                

                Standard
Category              Moody's     and Poor's                  
--------              -------     ----------                  
Medium Term Notes      Baa2           A-                      
ESOP Senior Notes      Baa2           A-                      
Commercial Paper       P-2            A-2                     

CAPITAL STRUCTURE AND FINANCIAL CONDITION                               
The Company's balance sheet and financial condition               
continue to be strong.  The Company's available borrowing               
facilities as of December 31, 1994 are detailed in Note 9 of            
the Notes to Consolidated Financial Statements.                         

In the fiscal year ended June 30, 1992, the Company issued        
150,000 PERCS shares and used the proceeds of this offering             
to purchase $430,000,000 of the Company's common stock for              
treasury.  The PERCS are discussed further in Note 18 of the            
Notes to Consolidated Financial Statements.  On January 23,             
1995, Tandy announced that it had exercised its right to call           
the issued and outstanding PERCS for conversion on March 10,            
1995 prior to the mandatory conversion date of April 15,                
1995.  To complete the redemption, the Company will issue               
from treasury stock approximately 11,816,000 shares of Tandy            
Corporation common stock.                                               

On August 1, 1994, the Company announced that its Board of        
Directors authorized management to purchase up to 7,500,000             
shares of its common stock in addition to shares required for           
employee plans.  On December 30, 1994, the Board of Directors           
authorized management to increase the share repurchase                  
program to 12,500,000 shares.  Purchases will be made from              
time to time in the open market, and it is expected that                
funding of the program will come from existing cash,                    
short-term debt and proceeds from the sale of the credit card           
portfolios.  At December 31, 1994, approximately 5,000,000              
shares had been repurchased under this program.                         

The Company's issue of 10% subordinated debentures due            
June 30, 1994 was called by the Company on February 23, 1994            
for redemption on April 1, 1994.  The redemption was at 100%            
of face value or $32,431,000.                                           

The revolving credit backup facilities to Tandy's                 
commercial paper program were renewed in May 1994.  These               
facilities are to be used only if maturing commercial paper             
cannot be repaid due to an inability to sell new commercial             
paper.  This agreement is composed of two facilities--one for           
$200,000,000 expiring May 1995 and another $200,000,000                 
facility expiring in May 1997.  Annual commitment fees for              
the facilities are 2/25 of 1% per annum and 1/8 of 1% per               
annum, respectively, whether used or unused.                            

In fiscal 1991, the Company filed a shelf registration for        
$500,000,000, of which $400,000,000 was designated for                  
medium-term notes, and Tandy Credit Corporation increased its           
medium-term note program by $200,000,000.  During fiscal                
1991, short-term debt was refinanced by the issuance of                 
$155,500,000 in medium-term notes.  Tandy's medium-term notes           
outstanding at December 31, 1994 totaled $73,044,000 compared           
to $125,479,000 at December 31, 1993.                                   

The total debt-to-capitalization ratio was 17.1%, 22.8%,          
27.3% and 23.4% at December 31, 1994, December 31, 1993,                
December 31, 1992 and June 30, 1992, respectively.  This                
debt-to-capitalization ratio should improve further in fiscal           
1995 due to the cash proceeds from the sales of the credit              
operations being used to retire debt, fund the repurchase of            
outstanding common shares into treasury shares and for other            
purposes.                                                               

Management believes that the Company's present borrowing          
capacity is greater than the established credit lines and               
long-term debt in place.  Management also believes that the             
Company's cash flow from operations, cash and short-term                
investments and its available borrowing facilities are more             
than adequate to fund planned store expansion and to meet               
debt service and dividend requirements and to fund its share            
repurchase program.                                                     

INFLATION                                                               
Inflation has not significantly impacted the Company over         
the past three years.  Management does not expect inflation             
to have a significant impact on operations in the foreseeable           
future unless global situations substantially affect the                
world economy.                                                          

NEW ACCOUNTING STANDARDS                                                
The American Institute of Certified Public Accountants            
issued Statement of Position 93-7, "Reporting on Advertising            
Costs," in December 1993.  The statement generally requires             
all advertising costs to be expensed in the period in which             
the costs are incurred or the first time the advertising                
takes place, and is effective for years beginning after June            
15, 1994.  The statement is not anticipated to have any                 
material effect on the results of operations or financial               
condition of the Company.                                               

SALE OF JOINT VENTURE INTEREST                                          
During the quarter ended September 30, 1993, the Company          
entered into definitive agreements with Nokia Corporation               
("Nokia") to sell the Company's interests in two cellular               
telephone manufacturing joint ventures with Nokia, TMC                  
Company Ltd. located in Masan, Korea, and TNC Company located           
in Fort Worth, Texas.  Pursuant to the terms of the                     
definitive agreements, the Company received an aggregate of             
approximately $31,700,000 for its interests in these joint              
ventures.  The Company also entered into a three-year                   
Preferred Supplier Agreement pursuant to which it has agreed            
to purchase from Nokia substantially all of Radio Shack's               
requirements for cellular telephones at prevailing                      
competitive market prices at the time of the purchase.  These           
operations were not part of the overall divestment plan                 
adopted in June 1993 by the Company's Board of Directors;               
therefore, the gain on the sale and their results of                    
operations were not included in discontinued operations.                

INTERTAN UPDATE                                                         
InterTAN, the former foreign retail operations of Tandy,          
was spun off to Tandy stockholders as a tax-free dividend in            
fiscal 1987.  Under the merchandise purchase terms of the               
original distribution agreement, InterTAN could purchase on             
payment terms products sold or secured by Tandy.  A&A                   
International ("A&A"), a subsidiary of Tandy, was the                   
exclusive purchasing agent for products originating in the              
Far East for InterTAN.                                                  

On July 16, 1993 InterTAN had an account payable to Tandy         
of approximately $17,000,000, of which $7,600,000 was in                
default.  InterTAN's outstanding purchase orders for                    
merchandise placed under the distribution agreement with                
Tandy, but not yet shipped, totaled approximately                       
$44,000,000.  Because InterTAN had defaulted, on July 16                
Tandy terminated the merchandise purchase terms of the                  
distribution agreement and the license agreements.  Tandy               
offered InterTAN interim license agreements which expired               
July 22, 1993, unless extended.  The agreements were extended           
on July 23, 1993.                                                       

On July 30, 1993 Trans World Electronics, Inc. ("Trans            
World"), a subsidiary of Tandy, reached agreement with                  
InterTAN's banking syndicate to buy approximately $42,000,000           
of InterTAN's debt at a negotiated, discounted price.  The              
closing of this purchase occurred on August 5, 1993, at which           
time Tandy resumed limited shipments to InterTAN and granted            
a series of short-term, interim licenses pending the                    
execution of new license and merchandise agreements.  The               
debt purchased from the banks has been restructured into a              
seven-year note with interest of 8.64% due semiannually                 
beginning February 25, 1994 and semiannual principal payments           
beginning February 25, 1995 (the "Series A" note).  Trans               
World provided approximately $10,000,000 in working capital             
and trade credit to InterTAN.  Interest on the working                  
capital loan (the "Series B" note) of 8.11% is due                      
semiannually beginning February 25, 1994 with the principal             
due in full on August 25, 1996.  Trans World also has                   
received warrants with a five-year term exercisable for                 
approximately 1,450,000 shares of InterTAN common stock at an           
exercise price of $6.618 per share.  As required by an                  
agreement with Tandy, InterTAN has registered the warrants              
under the Securities Act of 1933.  At December 31, 1994,                
InterTAN's common stock price, as quoted in the Wall Street             
                                   -----------
Journal, was $8.125 per share.  The fair market value of the            
-------                                                                 
warrants at December 31, 1994 approximates $2,500,000.                  

In addition to the bank debt purchased by Trans World and         
the working capital loan, InterTAN's obligations to Trans               
World included two additional notes for approximately                   
$23,665,000 (the "Series C" note) and $24,037,000 (the                  
"Series D" note) with interest rates of 7.5% and 8%,                    
respectively.  The notes represented the restructuring of               
InterTAN accounts payable for merchandise already shipped and           
required monthly interest payments.  All principal and                  
interest on the Series C note was paid in full by December              
31, 1993.  The Series D note was paid in full during the                
first quarter of 1994.  All of Tandy's debt from InterTAN is            
secured by a first priority lien on substantially all of                
InterTAN's assets in Canada and the U.K.                                

A new merchandise agreement was reached with InterTAN in          
October 1993 which requires future purchase orders to be                
backed by letters of credit posted by InterTAN.  New license            
agreements provide for a future royalty to Tandy.  InterTAN             
had obligations for purchase orders outstanding for                     
merchandise ordered by A&A for InterTAN but not yet shipped             
totaling approximately $24,705,000 at December 31, 1994.                

InterTAN has increased its bank revolving credit facility         
with the new banking syndicate to Canadian $60,000,000 (U.S.            
$42,774,000 equivalent at December 31, 1994).  In the case of           
InterTAN's default on the bank credit line, Tandy will, at              
the option of InterTAN's new banking syndicate, purchase                
InterTAN's inventory and related accounts receivable at 50%             
of their net book value, up to the amount of outstanding bank           
loans, but not to exceed Canadian $60,000,000.  In that                 
event, Tandy could foreclose on its first priority lien on              
InterTAN's assets in Canada and the U.K.  If Tandy fails to             
purchase the inventory and related accounts receivable of               
InterTAN from the banking syndicate, the syndicate upon                 
notice to Tandy and expiration of time, can foreclose upon              
InterTAN's assets in Canada and the U.K. ahead of Tandy.  The           
inventory repurchase agreement between InterTAN's banking               
syndicate and Tandy has been amended and restated to reflect            
the foregoing.                                                          

As of December 31, 1994 InterTAN owed Tandy an aggregate          
of $39,965,000, net of discount.  The current portion of the            
obligation approximates $8,707,000 and the non-current                  
portion approximates $31,258,000.  In 1994 Tandy recognized             
$3,855,000 in accretion of discount on the note receivable              
from InterTAN which resulted from the purchase of the bank              
debt at a discounted price.  Accretion of this discount is              
based on the effective interest rate method.  Tandy                     
recognized sales to and commission income from InterTAN of              
approximately $19,764,000 and interest income of $8,280,000             
during fiscal 1994.  During the year ended December 31, 1993,           
Tandy recognized approximately $93,315,000 of sales to                  
InterTAN and interest income of $3,085,000.  Tandy's sales to           
InterTAN totaled $90,130,000 during the six months ended                
December 31, 1992 and $171,126,000 during fiscal 1992.                  

A&A will continue as the exclusive purchasing agent for           
InterTAN in the Far East on a commission basis.  Commencing             
in March 1994, only the purchasing agent commission and sales           
by Tandy manufacturing plants to InterTAN were recorded as              
sales and operating revenues.  InterTAN purchases from third            
parties through A&A are no longer recorded as sales,                    
reflecting the arrangement under the new merchandise                    
agreement.  Accordingly, sales by Tandy to InterTAN in 1994             
are considerably lower than in prior years, however, the                
earned income relating thereto was not materially different.            

Through February 1995 InterTAN has met all of its payment         
obligations to Tandy.  In addition, its operations have                 
improved in fiscal 1995 as evidenced by its published net               
income for the six months ended December 31, 1994                       
approximating $17,704,000 or $1.11 per fully diluted share as           
opposed to net income of $4,567,000 or $0.49 per fully                  
diluted share for the same period in the prior year.  As a              
result, nothing has come to the attention of management which           
would indicate that InterTAN would not be able to continue to           
meet its payment obligations pursuant to the debt agreements            
with Tandy.                                                             

Canadian tax authorities are reviewing InterTAN's Canadian        
subsidiary's 1987-89 tax returns.  The Company cannot                   
determine whether the ultimate resolution of that review will           
have an effect on InterTAN's ability to meet its obligations            
to Tandy, but at the present, the Company believes that the             
ultimate resolution of this review will not impair InterTAN's           
ability to meet its obligations to Tandy.                               

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.                   

The Index to Consolidated Financial Statements is found on        
page 27.  The Company's Financial Statements and Notes to               
Consolidated Financial Statements follow the index.                     

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON               
ACCOUNTING AND FINANCIAL DISCLOSURE.                  

None.                                                             

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PART III                                                                

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT            

Tandy will file a definitive proxy statement with the             
Securities and Exchange Commission not later than 120 days              
after the end of the fiscal year covered by this Form 10-K              
pursuant to Regulation 14A.  The information called for by              
this Item with respect to directors has been omitted pursuant           
to General Instruction G(3).  This information is                       
incorporated by reference from the Proxy Statement for the              
1995 Annual Meeting.  For information relating to the                   
Executive Officers of the Company, see Part I of this report.           
The Section 16(A) reporting information is incorporated by              
reference from the Proxy Statement for the 1995 Annual                  
Meeting.                                                                

ITEM 11.  EXECUTIVE COMPENSATION                                        

Tandy will file a definitive proxy statement with the             
Securities and Exchange Commission not later than 120 days              
after the end of the fiscal year covered by this Form 10-K              
pursuant to Regulation 14A.  The information called for by              
this Item with respect to executive compensation has been               
omitted pursuant to General Instruction G(3).  This                     
information is incorporated by reference from the Proxy                 
Statement for the 1995 Annual Meeting.                                  

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND           
MANAGEMENT                                                              

Tandy will file a definitive proxy statement with the             
Securities and Exchange Commission not later than 120 days              
after the end of the fiscal year covered by this Form 10-K              
pursuant to Regulation 14A.  The information called for by              
this Item with respect to security ownership of certain                 
beneficial owners and management has been omitted pursuant to           
General Instruction G(3).  This information is incorporated             
by reference from the Proxy Statement for the 1995 Annual               
Meeting.                                                                

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                

Tandy will file a definitive proxy statement with the             
Securities and Exchange Commission not later than 120 days              
after the end of the fiscal year covered by this Form 10-K              
pursuant to Regulation 14A.  The information called for by              
this Item with respect to certain relationships and                     
transactions with management and others has been omitted                
pursuant to General Instruction G(3).  This information is              
incorporated by reference from the Proxy Statement for the              
1995 Annual Meeting.                                                    

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PART IV                                                                 

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS           
ON FORM 8-K.                                        

(a) Documents filed as part of this report.                       
1.  Financial Statements                                  

The financial statements filed as a part of this report           
are listed in the "Index to Consolidated Financial                      
Statements" on page 27.  The index and statements are                   
incorporated herein by reference.                                       

3.  Exhibits required by Item 601 of Regulation S-K       

A list of the exhibits required by Item 601 of Regulation         
S-K and filed as part of this report is set forth in the                
Index to Exhibits on page 56, which immediately precedes such           
exhibits.                                                               

Certain instruments defining the rights of holders of             
long-term debt of the Company and its consolidated                      
subsidiaries are not filed as exhibits to this report because           
the total amount of securities authorized thereunder does not           
exceed ten percent of the total assets of the Company on a              
consolidated basis.  The Company hereby agrees to furnish the           
Securities and Exchange Commission copies of such instruments           
upon request.                                                           

(b) Reports on Form 8-K.                                          

No reports on Form 8-K were filed for the three months            
ended December 31, 1994.                                                

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SIGNATURES                                                              

Pursuant to the requirements of Section 13 or 15(d) of the        
Securities Exchange Act of 1934, Tandy Corporation has duly             
caused this report to be signed on its behalf by the                    
undersigned, thereunto duly authorized.                                 

     TANDY CORPORATION

March 30, 1995                /s/ John V.  Roach                        
                   -------------------------------
  John V.  Roach
                Chairman of the Board, Chief
                   Executive Officer and President

Pursuant to the requirements of Section 13 or 15(d) of the        
Securities Exchange Act of 1934, Tandy Corporation has duly             
caused this report to be signed on its behalf by the                    
following persons in the capacities indicated on this 30th              
day of March, 1995.                                                     

Signature                    Title                                      

/s/ John V. Roach            Chairman of the Board, Chief               
--------------------------   Executive Officer and President            
John V. Roach                (Chief Executive Officer)                  

/s/ Dwain H. Hughes          Senior Vice President and Chief            
--------------------------   Financial Officer                          
Dwain H. Hughes              (Principal Financial Officer)              

/s/ Richard L. Ramsey        Vice President and Controller              
--------------------------                                              
Richard L. Ramsey            (Principal Accounting Officer)             

/s/ James I. Cash, Jr.       Director                                   
--------------------------                                              
James I. Cash, Jr.                                                      

/s/ Lewis F. Kornfeld, Jr.   Director                                   
--------------------------                                              
Lewis F. Kornfeld, Jr.                                                  

/s/ Jack L. Messman          Director                                   
--------------------------                                              
Jack L. Messman                                                         

/s/ William G. Morton        Director                                   
--------------------------                                              
William G. Morton                                                       

--------------------------   Director                                   
Thomas G. Plaskett                                                      

/s/ William T. Smith         Director                                   
--------------------------                                              
William T. Smith                                                        

/s/ Alfred J. Stein          Director                                   
--------------------------                                              
Alfred J. Stein                                                         

/s/ William E. Tucker        Director                                   
--------------------------                                              
William E. Tucker                                                       

/s/ Jesse L. Upchurch        Director                                   
--------------------------                                              
Jesse L. Upchurch                                                       

/s/ John A. Wilson           Director                                   
--------------------------                                              
John A. Wilson                                                          

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TANDY CORPORATION           

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS          

                                              Page

Report of Independent Accountant ....................      28           
Consolidated Statements of Income for each of                           
the two years ended December 31, 1994, the                          
six months ended December 31, 1992 and the                          
year ended June 30, 1992 ..........................      29         
Consolidated Balance Sheets at December 31, 1994                        
and December 31, 1993 .............................      30         
Consolidated Statements of Cash Flows for each                          
of the two years ended December 31, 1994, the                       
six months ended December 31, 1992 and the year                     
ended June 30, 1992 ...............................      31         
Consolidated Statements of Stockholders' Equity                         
for each of the two years ended December 31, 1994,                  
the six months ended December 31, 1992 and the year                 
ended June 30, 1992 ...............................   32-33         
Notes to Consolidated Financial Statements ..........   34-55           

Separate financial statements of Tandy Corporation have           
been omitted because Tandy is primarily an operating company            
and the amount of restricted net assets of consolidated and             
unconsolidated subsidiaries and Tandy's equity in                       
undistributed earnings of 50% or less-owned companies                   
accounted for by the equity method are not significant.  All            
subsidiaries of Tandy Corporation are included in the                   
consolidated financial statements.  Financial statements of             
50% or less-owned companies have been omitted because they do           
not, considered individually or in the aggregate, constitute            
a significant subsidiary.                                               

The financial statement schedules should be read in               
conjunction with the consolidated financial statements.  All            
other schedules have been omitted because they are not                  
applicable, not required or the information is included in              
the consolidated financial statements or notes thereto.                 

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REPORT OF INDEPENDENT ACCOUNTANTS         

To the Board of Directors and Stockholders of                           
Tandy Corporation                                                       

In our opinion, the consolidated financial statements listed            
in the accompanying index on page 27 present fairly, in all             
material respects, the financial position of Tandy                      
Corporation and its subsidiaries (the "Company") at December            
31, 1994 and 1993, and the results of their operations and              
their cash flows for each of the two years in the period                
ended December 31, 1994, the six months ended December 31,              
1992, and for the year ended June 30, 1992 in conformity with           
generally accepted accounting principles.  These financial              
statements are the responsibility of the Company's                      
management; our responsibility is to express an opinion on              
these financial statements based on our audits.  We conducted           
our audits of these statements in accordance with generally             
accepted auditing standards which require that we plan and              
perform the audit to obtain reasonable assurance about                  
whether the financial statements are free of material                   
misstatement.  An audit includes examining, on a test basis,            
evidence supporting the amounts and disclosures in the                  
financial statements, assessing the accounting principles               
used and significant estimates made by management, and                  
evaluating the overall financial statement presentation.  We            
believe that our audits provide a reasonable basis for the              
opinion expressed above.                                                

As discussed in Note 2 to the consolidated financial                    
statements, the Company changed its method of accounting for            
income taxes in 1993.                                                   

/s/ Price Waterhouse LLP                                                
--------------------------                                              
PRICE WATERHOUSE LLP                                                    

Fort Worth, Texas                                                       
February 22, 1995                                                       

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                                                            [Enlarge/Download Table]
                                                                                                                           
CONSOLIDATED STATEMENTS OF INCOME                                                                                          
Tandy Corporation and Subsidiaries                                                                                         
<CAPTIONS>                                                                                                                 

                                                        Year Ended                 Six Months Ended         Year Ended     
                                                       December 31,                   December 31,           June 30,      
                                                1994                 1993                 1992                 1992        
                                        ----------------------------------------- -------------------- --------------------
(In thousands, except                                 % of                 % of                 % of                 % of  
per share amounts)                        Dollars   Revenues   Dollars   Revenues   Dollars   Revenues   Dollars   Revenues
---------------------------------------------------------------------------------------------------------------------------
                                                                                                                           
Net sales and operating revenues        $4,943,679   100.0%  $4,102,551   100.0%  $2,161,149   100.0%  $3,649,284   100.0% 
Cost of products sold                    3,017,615    61.0%   2,382,607    58.1%   1,221,231    56.5%   1,926,390    52.8% 
                                        ----------           ----------           ----------           ----------          
Gross profit                             1,926,064    39.0%   1,719,944    41.9%     939,918    43.5%   1,722,894    47.2% 

Expenses:                                                                                                                  
Selling, general and administrative      1,532,673    31.0%   1,354,676    33.0%     761,799    35.2%   1,342,120    36.8% 
Depreciation and amortization               84,782     1.7%      79,944     1.9%      39,960     1.9%      74,521     2.0% 
Interest income                            (78,612)   -1.6%     (65,538)   -1.6%     (33,290)   -1.5%     (67,399)   -1.8% 
Interest expense                            30,047     0.6%      39,707     1.0%      20,532     0.9%      43,154     1.2% 
Provision for restructuring costs           89,071     1.8%          --               48,000     2.2%          --          
Gain from sale of credit accounts                                                                                          
  and extended service contracts           (91,437)   -1.8%          --                   --                   --          
                                        ----------           ----------           ----------           ----------          
                                         1,566,524    31.7%   1,408,789    34.3%     837,001    38.7%   1,392,396    38.2% 
                                        ----------           ----------           ----------           ----------          

Income before income taxes,                                                                                                
  discontinued operations and                                                                                              
  cumulative effect of change                                                                                              
  in accounting principle                  359,540     7.3%     311,155     7.6%     102,917     4.8%     330,498     9.0% 
Provision for income taxes                 135,205     2.7%     115,523     2.8%      35,236     1.6%     119,785     3.3% 
                                        ----------           ----------           ----------           ----------          
Income from continuing operations          224,335     4.6%     195,632     4.8%      67,681     3.2%     210,713     5.7% 
                                        ----------           ----------           ----------           ----------          

Loss from discontinued operations:                                                                                         
  Operating loss, net of tax                    --              (57,619)   -1.4%     (63,875)   -3.0%     (26,866)   -0.7% 
  Loss on disposal, net of tax                  --              (54,178)   -1.3%          --                   --          
                                        ----------           ----------           ----------           ----------          
                                                --             (111,797)   -2.7%     (63,875)   -3.0%     (26,866)   -0.7% 
                                        ----------           ----------           ----------           ----------          
Income before cumulative effect                                                                                            
  of change in accounting principle        224,335     4.6%      83,835     2.1%       3,806     0.2%     183,847     5.0% 

Cumulative effect on prior years of                                                                                        
  change in accounting principle                --               13,014     0.3%          --                   --          
                                        ----------           ----------           ----------           ----------          
Net income                                 224,335     4.6%      96,849     2.4%       3,806     0.2%     183,847     5.0% 

Preferred dividends                          6,777     0.1%       7,136     0.2%       2,419     0.1%       4,911     0.1% 
                                        ----------           ----------           ----------           ----------          
Net income available to                                                                                                    
  common shareholders                   $  217,558     4.5%  $   89,713     2.2%  $    1,387     0.1%  $  178,936     4.9% 
                                        ==========           ==========           ==========           ==========          

Net income available per                                                                                                   
  average common and                                                                                                       
  common equivalent share:                                                                                                 
Income from continuing operations       $     2.91           $     2.50           $     0.87           $     2.61          
Loss from discontinued operations               --                (1.48)               (0.85)               (0.34)         
                                        ----------           ----------           ----------           ----------          
Income before cumulative effect                                                                                            
  of change in accounting principle           2.91                 1.02                 0.02                 2.27          
Cumulative effect on prior years of                                                                                        
  change in accounting principle                --                 0.17                   --                   --          
                                        ----------           ----------           ----------           ----------          
Net income available per                                                                                                   
  average common and                                                                                                       
  common equivalent share               $     2.91           $     1.19           $     0.02           $     2.27          
                                        ==========           ==========           ==========           ==========          

Average common and common                                                                                                  
  equivalent shares outstanding             74,874               75,543               74,918               78,788          
                                        ==========           ==========           ==========           ==========          
Dividends declared per common share     $     0.63           $     0.60           $     0.30           $     0.60          
                                        ==========           ==========           ==========           ==========          

The accompanying notes are an integral part of these financial statements.                                                 
                                                                            
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CONSOLIDATED BALANCE SHEETS                                                                                      
Tandy Corporation and Subsidiaries                                                                               
<CAPTIONS>                                                                                                       

                                                                                            December 31,         
(In thousands)                                                                        1994                1993   
---------------------------------------------------------------------------------------------------------------- 
                                                                                                                 
Assets                                                                                                           
Current assets:                                                                                                  
  Cash and short-term investments                                                $   205,633         $   213,235 
  Accounts and notes receivable, less allowance for doubtful accounts                769,101             582,443 
  Inventories, at lower of cost or market                                          1,504,324           1,276,302 
  Other current assets                                                                77,202              88,005 
                                                                                 -----------         ----------- 
    Total current assets                                                           2,556,260           2,159,985 

Property, plant and equipment, at cost, less accumulated depreciation                504,587             463,738 
Investment in discontinued operations                                                     --             405,664 
Other assets, net of accumulated amortization                                        182,927             189,712 
                                                                                 -----------         ----------- 
                                                                                 $ 3,243,774         $ 3,219,099 
                                                                                 ===========         =========== 

Liabilities and Stockholders' Equity                                                                             
Current liabilities:                                                                                             
  Short-term debt, including current maturities of long-term debt                $   229,135         $   387,953 
  Accounts payable                                                                   582,194             279,942 
  Income taxes payable                                                                18,026              14,690 
  Accrued expenses                                                                   376,795             349,057 
                                                                                 -----------         ----------- 
    Total current liabilities                                                      1,206,150           1,031,642 
                                                                                 -----------         ----------- 

Long-term debt and capital leases, excluding current maturities                      153,318             186,638 
Other non-current liabilities                                                         34,095              50,069 
                                                                                 -----------         ----------- 
  Total other liabilities                                                            187,413             236,707 
                                                                                 -----------         ----------- 
Stockholders' Equity:                                                                                            
  Preferred stock, no par value, 1,000,000 shares authorized                                                     
    Series A junior participating, 100,000 shares authorized and none issued              --                  -- 
    Series B convertible, 100,000 shares authorized and issued                       100,000             100,000 
    Series C PERCS, 150,000 shares authorized and issued                             429,982             429,982 
  Common stock, $1 par value, 250,000,000 shares authorized                                                      
    with 85,645,000 shares issued                                                     85,645              85,645 
  Additional paid-in-capital                                                          93,357              85,752 
  Retained earnings                                                                2,176,971           2,028,041 
  Foreign currency translation effects                                                (1,799)              1,003 
  Stock held in treasury, at cost 27,388,000 and 21,689,000                                                      
    common shares, respectively                                                     (971,611)           (707,331)
  Unearned deferred compensation related to TESOP                                    (62,334)            (72,342)
                                                                                 -----------         ----------- 
    Total stockholders' equity                                                     1,850,211           1,950,750 
Commitments and contingent liabilities                                                                           
                                                                                 -----------         ----------- 
                                                                                 $ 3,243,774         $ 3,219,099 
                                                                                 ===========         =========== 

The accompanying notes are an integral part of these financial statements.                                       
                                                                            
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Consolidated Statements of Cash Flows                                                                                         
Tandy Corporation and Subsidiaries                                                                                            
<CAPTIONS>                                                                                                                    
                                                                          Year Ended            Six Months Ended    Year Ended
                                                                        December 31,              December 31,       June 30, 
                                                                 ---------------------------     --------------     ----------
(In thousands)                                                      1994             1993             1992             1992   
----------------------------------------------------------------------------------------------------------------------------- 
                                                                                                                              
Cash flows from operating activities:                                                                                         
Net income                                                       $ 224,335        $  96,849        $   3,806        $ 183,847 

Adjustments to reconcile net income to net cash                                                                               
  provided by operating activities:                                                                                           
  Loss reserve on disposal of discontinued operations                   --           54,178               --               -- 
  Provision for restructuring cost                                  89,071               --           87,500               -- 
  Gain on sale of extended service contracts                       (55,729)              --               --               -- 
  Gain on sale of credit card portfolios                           (35,708)              --               --               -- 
  Cumulative effect on prior years of change in                                                                               
    accounting principle                                                --           (13,014)             --               -- 
  Depreciation and amortization                                     84,782           98,571           53,502          103,281 
  Deferred income taxes and other items                             68,257           11,552          (29,097)           9,302 
  Provision for credit losses and bad debts                         49,344           57,491           41,483           67,388 
  Gain on sale of subsidiary, assets of which were                                                                            
    primarily real estate                                               --               --               --          (18,987)

  Changes in operating assets and liabilities:                                                                                
    Sale of credit card portfolios                                  85,764               --               --               -- 
    Receivables                                                   (230,938)          30,133         (107,295)        (121,719)
    Inventories                                                   (220,094)         (63,965)         (81,069)         (89,441)
    Other current assets                                            (8,504)          16,158          (11,882)          (2,955)
    Accounts payable, accrued expenses and income taxes            218,358           34,341           56,732           16,066 
                                                                 ---------        ---------        ---------        --------- 
Net cash provided by operating activities                          268,938          322,294           13,680          146,782 
                                                                 ---------        ---------        ---------        --------- 

Investing activities:                                                                                                         
  Additions to property, plant and equipment                      (180,559)        (129,287)         (69,661)        (127,495)
  Proceeds from sale of property, plant and equipment               56,437            3,011              790            2,002 
  Proceeds from sale of divested operations                        359,004          111,988               --               -- 
  Proceeds from sale of subsidiary, assets of                                                                                 
    which were primarily real estate                                    --               --               --           20,293 
  Purchase of InterTAN bank debt and restructuring                                                                            
    of working capital loans                                            --          (31,663)              --               -- 
  Other investing activities                                         4,203           (6,198)         (21,300)           3,010 
                                                                 ---------        ---------        ---------        --------- 
  Net cash provided (used) by investing activities                 239,085          (52,149)         (90,171)        (102,190)
                                                                 ---------        ---------        ---------        --------- 

Financing activities:                                                                                                         
  Purchases of treasury stock                                     (275,415)         (27,650)         (24,595)        (527,773)
  Sales of treasury stock to employee stock purchase program        41,579           42,067           25,412           49,590 
  Issuance of Series C PERCS                                            --               --               --          429,982 
  Dividends paid, net of taxes                                     (74,512)         (74,873)         (37,443)         (56,132)
  Changes in short-term borrowings, net                           (110,393)         (46,885)         186,917           57,533 
  Additions to long-term borrowings                                 28,936               --            1,043           21,071 
  Repayment of long-term borrowings                               (125,820)         (62,195)         (68,671)         (98,702)
                                                                 ---------        ---------        ---------        --------- 
  Net cash provided (used) by financing activities                (515,625)        (169,536)          82,663         (124,431)
                                                                 ---------        ---------        ---------        --------- 

Increase (decrease) in cash and short-term investments              (7,602)         100,609            6,172          (79,839)
Cash and short-term investments at the beginning of the year       213,235          112,626          106,454          186,293 
                                                                 ---------        ---------        ---------        --------- 
Cash and short-term investments at the end of the year           $ 205,633        $ 213,235        $ 112,626        $ 106,454 
                                                                 =========        =========        =========        ========= 

The accompanying notes are an integral part of these financial statements.                                                    
                                                                            
                                                            [Enlarge/Download Table]
                                                                                                                      
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY                                                                       
Tandy Corporation and Subsidiaries                                                                                    
<CAPTIONS>                                                                                                            
                                                                          Preferred              Common Stock         
                                                                                         -----------------------------
(In thousands)                                                              Stock           Shares          Dollars   
----------------------------------------------------------------------------------------------------------------------
                                                                                                                      
Balance at June 30, 1991                                                  $   100,000          85,645      $    85,645
Purchase of treasury stock                                                         --              --               --
Tender offer for common stock                                                      --              --               --
Foreign currency translation adjustments, net of taxes                             --              --               --
Sale of treasury stock to SPP                                                      --              --               --
Exercise of stock options                                                          --              --               --
Issuance of 150,000 shares of Series C PERCS                                  429,982              --               --
Series B convertible stock dividends, net of taxes of $2,530,000                   --              --               --
TESOP deferred compensation earned                                                 --              --               --
Series C PERCS dividends                                                           --              --               --
Common stock dividends declared                                                    --              --               --
Net income                                                                         --              --               --
                                                                          -----------     -----------      -----------
Balance at June 30, 1992                                                      529,982          85,645           85,645
Purchase of treasury stock                                                         --              --               --
Foreign currency translation adjustments, net of taxes                             --              --               --
Sale of treasury stock to SPP                                                      --              --               --
Exercise of stock options                                                          --              --               --
Series B convertible stock dividends, net of taxes of $1,246,000                   --              --               --
TESOP deferred compensation earned                                                 --              --               --
Series C PERCS dividends                                                           --              --               --
Common stock dividends declared                                                    --              --               --
Net income                                                                         --              --               --
                                                                          -----------     -----------      -----------
Balance at December 31, 1992                                                  529,982          85,645           85,645
Purchase of treasury stock                                                         --              --               --
Foreign currency translation adjustments, net of taxes                             --              --               --
Sale of treasury stock to SPP                                                      --              --               --
Exercise of stock options                                                          --              --               --
Series B convertible stock dividends, net of taxes of $2,497,000                   --              --               --
TESOP deferred compensation earned                                                 --              --               --
Series C PERCS dividends                                                           --              --               --
Repurchase of preferred stock                                                      --              --               --
Common stock dividends declared                                                    --              --               --
Net income                                                                         --              --               --
                                                                          -----------     -----------      -----------
Balance at December 31, 1993                                                  529,982          85,645           85,645
Purchase of treasury stock                                                         --              --               --
Foreign currency translation adjustments, net of taxes                             --              --               --
Sale of treasury stock to SPP                                                      --              --               --
Exercise of stock options                                                          --              --               --
Series B convertible stock dividends, net of taxes of $2,372,000                   --              --               --
TESOP deferred compensation earned                                                 --              --               --
Series C PERCS dividends                                                           --              --               --
Repurchase of preferred stock                                                      --              --               --
Common stock dividends declared                                                    --              --               --
Net income                                                                         --              --               --
                                                                          -----------     -----------      -----------
Balance at December 31, 1994                                              $   529,982          85,645      $    85,645
                                                                          ===========     ===========      ===========

The accompanying notes are an integral part of these financial statements.                                            
                                                                            
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                                                            [Enlarge/Download Table]
                                                                                                                              
<CAPTIONS>                                                                                                                    
                                                                               Foreign                                        
                                      Additional                               Currency          Unearned                     
         Treasury Stock                 Paid-In            Retained          Translation         Deferred                     
------------------------------                                                                                                
     Shares           Dollars           Capital            Earnings            Effects         Compensation          Total    
------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              
     (7,250)       $  (267,153)       $   105,650        $ 1,917,851        $    (1,198)       $   (94,033)       $ 1,846,762 
     (3,521)           (96,348)                --                 --                 --                 --            (96,348)
    (13,500)          (433,575)                --                 --                 --                 --           (433,575)
         --                 --                 --                 --              3,477                 --              3,477 
      1,795             62,256            (12,666)                --                 --                 --             49,590 
         20                688                 --                 --                 --                 --                688 
         --                 --                 --                 --                 --                 --            429,982 
         --                 --                 --             (4,911)                --                 --             (4,911)
         --                 --                 --                 --                 --              8,233              8,233 
         --                 --                 --            (12,573)                --                 --            (12,573)
         --                 --                 --            (44,432)                --                 --            (44,432)
         --                 --                 --            183,847                 --                 --            183,847 
-----------        -----------        -----------        -----------        -----------        -----------        ----------- 
    (22,456)          (734,132)            92,984          2,039,782              2,279            (85,800)         1,930,740 
       (959)           (25,000)                --                 --                 --                 --            (25,000)
         --                 --                 --                 --            (13,335)                --            (13,335)
        987             31,982             (6,570)                --                 --                 --             25,412 
          9                289                 --                 --                 --                 --                289 
         --                 --                 --             (2,419)                --                 --             (2,419)
         --                 --                 --                 --                 --              3,853              3,853 
         --                 --                 --            (16,050)                --                 --            (16,050)
         --                 --                 --            (18,945)                --                 --            (18,945)
         --                 --                 --              3,806                 --                 --              3,806 
-----------        -----------        -----------        -----------        -----------        -----------        ----------- 
    (22,419)          (726,861)            86,414          2,006,174            (11,056)           (81,947)         1,888,351 
       (763)           (24,749)                --                 --                 --                 --            (24,749)
         --                 --                 --                 --             12,059                 --             12,059 
      1,311             42,292               (225)                --                 --                 --             42,067 
        182              5,882               (437)                --                 --                 --              5,445 
         --                 --                 --             (4,638)                --                 --             (4,638)
         --                 --                 --                 --                 --              9,605              9,605 
         --                 --                 --            (32,100)                --                 --            (32,100)
         --             (3,895)                --                 --                 --                 --             (3,895)
         --                 --                 --            (38,244)                --                 --            (38,244)
         --                 --                 --             96,849                 --                 --             96,849 
-----------        -----------        -----------        -----------        -----------        -----------        ----------- 
    (21,689)          (707,331)            85,752          2,028,041              1,003            (72,342)         1,950,750 
     (6,798)          (296,419)                --                 --                 --                 --           (296,419)
         --                 --                 --                 --             (2,802)                --             (2,802)
      1,023             33,958              7,621                 --                 --                 --             41,579 
         76              2,481                (16)                --                 --                 --              2,465 
         --                 --                 --             (4,405)                --                 --             (4,405)
         --                 --                 --                 --                 --             10,008             10,008 
         --                 --                 --            (32,100)                --                 --            (32,100)
         --             (4,300)                --                 --                 --                 --             (4,300)
         --                 --                 --            (38,900)                --                 --            (38,900)
         --                 --                 --            224,335                 --                 --            224,335 
-----------        -----------        -----------        -----------        -----------        -----------        ----------- 
    (27,388)       $  (971,611)       $    93,357        $ 2,176,971        $    (1,799)       $   (62,334)       $ 1,850,211 
===========        ===========        ===========        ===========        ===========        ===========        =========== 

                                                                            
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS                              
Tandy Corporation and Subsidiaries                                      

NOTE 1-DESCRIPTION OF BUSINESS                                          
Tandy Corporation ("Tandy" or the "Company") is engaged in        
consumer electronics retailing including the retail sale of             
personal computers.  Radio Shack is the largest of Tandy's              
retail store systems with company-owned stores and                      
dealer/franchise outlets.  Tandy also operates the Computer             
City and Incredible Universe store chains.  Tandy Name Brand            
includes McDuff Electronics mall stores and Supercenters,               
VideoConcepts mall stores and The Edge in Electronics                   
boutique stores.  On December 30, 1994, the Company adopted a           
formal plan to close 233 Tandy Name Brand stores, and as a              
result of the closings, the Tandy Name Brand Retail Group               
will be dissolved in 1995.  The remaining 73 Tandy Name Brand           
stores will be transferred to the Radio Shack division.                 
Additionally, Tandy continues to operate certain related                
retail support groups and consumer electronics manufacturing            
businesses.                                                             

NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                       
PRINCIPLES OF CONSOLIDATION:  The consolidated financial          
statements include the accounts of Tandy and its wholly owned           
subsidiaries including its credit and insurance                         
subsidiaries.  Investments in 20% to 50% owned companies are            
accounted for on the equity method.  The manufacturing and              
marketing operatins included in the divestment plan have                
been accounted for as discontinued operations.  See Note 21             
for further information relating to discontinued operations.            
Significant intercompany transactions are eliminated in                 
consolidation.                                                          

CHANGE IN FISCAL YEAR:  On January 10, 1993, the Board of         
Directors authorized the fiscal year of Tandy to be changed             
from June 30 to December 31 and as of December 31, 1992 this            
change was made.  The fiscal periods of certain foreign                 
operations end one month earlier than the Company's year end            
to facilitate their inclusion in the consolidated financial             
statements.                                                             

FOREIGN CURRENCY TRANSLATION:  In accordance with the             
Financial Accounting Standards Board (the "FASB") Statement             
No. 52, "Foreign Currency Translation," balance sheet                   
accounts of the Company's foreign operations are translated             
from foreign currencies into U.S. dollars at year end or                
historical rates while income and expenses are translated at            
the weighted average sales exchange rates for the year.                 
Translation gains or losses related to net assets located               
outside the United States are shown as a separate component             
of stockholders' equity.  Losses aggregating $19,803,000, net           
of tax, relating to discontinued operations were transferred            
from equity and charged to loss on disposal of discontinued             
operations during 1993.  Gains and losses resulting from                
foreign currency transactions (transactions denominated in a            
currency other than the entity's functional currency) are               
included in net income.  Such foreign currency transaction              
gains approximated $1,495,000 for the year ended December 31,           
1994, $762,000 for the year ended December 31, 1993,                    
$3,065,000 for the six months ended December 31, 1992 and               
$10,642,000 for the year ended June 30, 1992.                           

CHANGE IN ACCOUNTING PRINCIPLE-PROVISION FOR INCOME TAXES:      
In January 1993, the Company adopted Statement of Financial             
Accounting Standard ("FAS") No. 109, "Accounting for Income             
Taxes" ("FAS 109") and applied the provisions prospectively.            
The adoption of FAS 109 changes the Company's method of                 
accounting for income taxes from the deferred method ("APB              
11") to an asset and liability approach.  Previously, the               
Company deferred the past tax effects of timing differences             
between financial reporting and taxable income.  The asset              
and liability approach requires the recognition of deferred             
tax liabilities and assets for the expected future tax                  
consequences of temporary differences between the carrying              
amounts and the tax bases of assets and liabilities.                    

The adjustments to the January 1, 1993 balance sheet to           
adopt FAS 109 totaled $13,014,000.  Approximately $9,786,000            
of this adjustment related to continuing operations and the             
remaining $3,228,000 was from discontinued operations.  The             
aggregate amount of $13,014,000 is refleted in the                      
accompanying 1993 Consolidated Statements of Income as the              
cumulative effect of change in accounting principle.  It                
primarily represents the impact of adjusting deferred taxes             
to reflect the then current tax rate of 34% as opposed to the           
higher tax rates that were in effect when the deferred taxes            
originated.  See Note 12 for further discussion of income               
taxes.                                                                  

EXTENDED SERVICE CONTRACTS:  Tandy's retail operations            
offer extended service contracts on products sold.  These               
contracts generally provide extended service coverage for               
period of 12 to 48 months.  Contracts sold prior to January             
1, 1995 were offered directly by the Company, and thus the              
Company was the responsible party.  The Company accounts for            
such contracts in accordance with FASB Technical Bulletin No.           
90-1, "Accounting for Separately Priced Extended Warranty and           
Product Maintenance Contracts" which requires that revenues             
from sales of extended service contracts be recognized                  
ratably over the lives of the contracts.  Costs directly                
related to sales of such contracts are deferred and charged             
to expense proportionately as the revenues are recognized.  A           
loss is recognized on extended service contracts if the sum             
of the expected costs of providing services under the                   
contracts exceeds related unearned revenue.                             

As described in Note 3, the Company transferred all               
obligations with respect to contracts in force at December              
31, 1994 to an unrelated party, except certain contracts                
aggregating approximately $7,734,000.  The Company will sell            
extended service contracts offered by the unrelated third               
party subsequent to 1994.  The Company will receive a                   
commission from the unrelated third party upon sale of each             
contract.  The commissions will be recognized as income in              
the period in which the contracts are sold.                             

CASH AND SHORT-TERM INVESTMENTS:  Cash on hand in stores,         
deposits in banks and short-term investments with original              
maturities of three months or less are considered cash and              
cash equivalents.  Short-term investments are carried at                
cost, which approximates market value.                                  

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS:          
CREDIT OPERATIONS-The customer receivables of the credit      
operations are classified as current assets, including                  
amounts which are contractually due after one year.  This is            
consitent with retail industry practices.                               

Finance charges, late charges and returned check fees             
arising from the Company's private label credit cards are               
recognized when earned as interest income.  The Company's               
policy is to write off accounts when they become 180 days               
past due or whenever deemed uncollectible by management,                
whichever is sooner.  Collection efforts continue subsequent            
to write-off.                                                           

The Company is charged a fee by an outside accounts               
receivable processing service for establishing new accounts.            
These initial direct costs are capitalized and amortized on a           
straight-line basis over a period of 84 months, the estimated           
life over which the account will be used by a customer.                 
These costs are shown in the accompanying Consolidated                  
Balance Sheets as a part of the related accounts receivable.            
Amortization of these loan origination costs are included as            
a reduction of interest income in the accompanying                      
Consolidated Statements of Income.  Costs to process accounts           
on an ongoing basis are expensed as incurred.                           

As described in Note 3, the Company's Computer City and           
Incredible Universe private label credit card portfolios were           
sold in December 1994, and a letter of intent was signed to             
sell Tandy Credit and the Company's Radio Shack and McDuff              
private label credit card portfolios in the first half of               
1995, subject to regulatory and rating agency approval.                 
Commencing in 1995, sales made pursuant to Computer City and            
Incredible Universe private label credit card programs, as              
well as sales made pursuant to the Radio Shack private label            
credit card program made subsequent to the finalization of              
its sales agreement, will be financed by an unrelated third             
party.                                                                  

OTHER CUSTOMER RECEIVABLES-An allowance for doubtful          
accounts is provided when accounts are determined to be                 
uncollectible.                                                          

Concentrations of credit risk with respect to customer            
receivables are limited due to the large number of customers            
comprising the Company's customer base and their location in            
many different geographic areas of the country; however, see            
Note 8 for a discussion of a concentration of credit risk of            
long-term receivables.  The fair value of total receivables,            
recorded at approximately $898,027,000 on the Consolidated              
Balance Sheet at December 31, 1994, is approximately                    
$912,000,000.                                                           

INVENTORIES:  Inventories are stated at the lower of cost         
(principally based on average cost) or market value and are             
comprised primarily of finished goods.                                  

PROPERTY, PLANT AND EQUIPMENT:  For financial reporting           
purposes, depreciation and amortization are primarily                   
calculated using the straight-line method, which amortizes              
the cost of the assets over their estimated useful lives.               
The ranges of estimated useful lives are:                               

_____________________________________________________________           
Buildings .......................                 10-40 years           
Buildings under capital lease ...  over the life of the lease           
Equipment .......................                  2-15 years           
Leasehold improvements ..........   primarily, the shorter of           
               the life of the improvements or the
term of the related lease and certain renewal periods   
_____________________________________________________________           

When depreciable assets are sold or retired, the related          
cost and accumulated depreciation are removed from the                  
accounts.  Any gains or losses are included in selling,                 
general and administrative expenses.  Major additions and               
betterments are capitalized.  Maintenance and repairs which             
do not materially improve or extend the lives of the                    
respective assets are charged to operating expenses as                  
incurred.  Amortization of buildings under capital lease is             
included in depreciation and amortization in the Consolidated           
Statements of Income.                                                   

AMORTIZATION OF EXCESS PURCHASE PRICE OVER NET TANGIBLE           
ASSETS OF BUSINESSES ACQUIRED:  The excess purchase           
price is generally amortized over a 40-year period using the            
straight-line method and the net balance is classified as a             
non-current asset.  The Company periodically reviews goodwill           
to assess recoverability, and impairments would be recognized           
in operating results if a permanent diminution in value were            
to occur.                                                               

FAIR VALUE OF FINANCIAL INSTRUMENTS:  The fair value of           
financial instruments is determined by reference to various             
market data and other valuation techniques as appropriate.              
Unless otherwise disclosed, the fair values of financial                
instruments approximate their recorded values.                          

HEDGING AND DERIVATIVE ACTIVITY:  The Company has not             
historically utilized derivatives to manage foreign currency            
risks and exposure except for an immaterial amount of foreign           
exchange forward contracts used to hedge a portion of its               
foreign purchases.  As of December 31, 1994, the Company had            
no outstanding purchase orders for which a foreign exchange             
contract was used as a hedge.  The few contracts that were              
used did not involve leverage and did not have other high               
risk characteristics.  Moody's has assigned a counterparty              
rating to Tandy Corporation of Baa2.  This rating is an                 
opinion of the financial capacity of Tandy to honor its                 
senior obligations under financial contracts.  Financial                
contracts entered into by Tandy include the limited use of              
foreign currency forwards to hedge foreign exchange risk                
arising from the purchase of inventory.                                 

In conjunction with sale-leaseback transactions of                
Incredible Universe properties, the Company from time to time           
may enter into interest rate swaps to lock in a fixed rate              
that Company management believes is beneficial in the                   
long-term.  Through March 10, 1995, the Company entered into            
five swaps whereby it traded floating rates for fixed rates             
ranging from 7.185% to 7.875%.  These swaps related to                  
notional amounts of approximately $90,000,000; the Board of             
Directors has authorized management to enter into such swaps            
up to notional amounts not exceeding $250,000,000.  During              
1994, 1993, the six months ended December 31, 1992 and the              
year ended June 30, 1992, the Company was not a party to any            
interest rate swaps.                                                    

REVENUES:  Retail sales are recorded on the accrual basis.        
Credit service charges are recorded monthly on the basis of             
customer account balances.                                              

STORE PRE-OPENING COSTS:  Direct incremental expenses             
associated with the openings of new Computer City and                   
Incredible Universe stores, comprised primarily of payroll              
and payroll-related costs, are deferred and amortized over a            
twelve-month period from the date of the store opening.                 
Deferred store pre-opening expenses for Computer City and               
Incredible Universe approximated $4,538,000 and $1,845,000 at           
December 31, 1994 and 1993, respectively.                               

NET INCOME PER AVERAGE COMMON AND COMMON EQUIVALENT SHARE:        
Net income per average common and common equivalent share is            
computed by dividing net income less the Series B convertible           
stock dividends by the weighted average common and common               
equivalent shares outstanding during the period.  As the                
Preferred Equity Redemption Convertible Preferred Stock                 
("PERCS") mandatorily convert into common stock, they are               
considered outstanding common stock and the dividends are not           
deducted from net income for purposes of calculating net                
income per average common and common equivalent share.  On              
January 23, 1995, the Company announced that the PERCS would            
be converted on March 10, 1995.  To complete the conversion,            
the Company will issue approximately 11,816,000 shares of               
Tandy Corporation common stock out of treasury stock.                   
Current year weighted average share calculations include                
approximately 11,816,000 common shares relating to the PERCS.           
Per share amounts and the weighted average number of shares             
outstanding for the year ended December 31, 1993, the                   
six-month period ended December 31, 1992 and for the fiscal             
year ended June 30, 1992, have been retroactively restated to           
reflect the PERCS conversion into approximately 11,816,000              
common shares in lieu of the prior year assumption of                   
12,457,000 shares which was based on the December 31, 1993              
common stock price.                                                     

Earnings available per common and common equivalent share         
amounts initially reported by the Company for the year ended            
December 31, 1993, the six months ended December 31, 1992 and           
the fiscal year ended June 30, 1992 were $2.48, $0.84 and               
$2.58 for income from continuing operations, respectively,              
and $1.18, $0.02 and $2.24 for net income, respectively.                
Fully diluted earnings available per common and common                  
equivalent share are not presented since dilution is less               
than 3%.                                                                

The Series B convertible stock dividends were $6,777,000          
for the year ended December 31, 1994, $7,136,000 for the year           
ended December 31, 1993, $2,419,000, net of tax, for the six            
months ended December 31, 1992 and $4,911,000, net of tax, in           
fiscal 1992.  The taxes netted against these amounts for the            
six months ended December 31, 1992 and in fiscal 1992 were              
$1,246,000 and $2,530,000, respectively.  Upon adoption of              
FAS 109 as of January 1, 1993 and in accordance with EITF               
92-3, preferred dividends utilized in the earnings per share            
calculation can no longer be reduced for associated tax                 
benefits paid on unallocated preferred stock held by an                 
employee stock ownership plan.  Dividends on the PERCS, which           
were issued in February 1992, were $32,100,000 for each of              
the two years ended December 31, 1994, $16,050,000 for the              
six months ended December 31, 1992 and $12,573,000 for the              
year ended June 30, 1992.                                               

Earnings available per common and common equivalent share         
for each period presented, assuming the PERCS converted to              
common stock under the "if converted" method and only if                
dilutive, would have been presented as in the table which               
follows.                                                                
    
                                                        [Enlarge/Download Table]
                                                                                                      
<CAPTIONS>                                                                                            
                                                Year Ended             Six Months Ended    Year Ended 
                                               December 31,              December 31,       June 30,  
                                        ---------------------------     --------------     ---------- 
(In thousands)                             1994             1993             1992             1992    
----------------------------------------------------------------------------------------------------- 
                                                                                                      
Primary EPS, as adjusted:                                                                             
Income from continuing operations       $     2.94       $     2.45       $     0.78       $     2.59 
Loss from discontinued operations               --            (1.75)           (1.01)           (0.36)
Cumulative effect on prior years of                                                                   
  change in accounting principle                --             0.20               --               -- 
                                        ----------       ----------       ----------       ---------- 
Net income available per average                                                                      
  common and common equivalent share    $     2.94       $     0.90       $    (0.23)      $     2.23 
                                        ==========       ==========       ==========       ========== 
                                                                            
TREASURY STOCK REPURCHASE PROGRAM:  On August 1, 1994, the        
Company announced that its Board of Directors authorized                
management to purchase up to 7,500,000 shares of its common             
stock in addition to shares required for employee plans.  On            
December 30, 1994, the Board of Directors authorized                    
management to increase the share repurchase program to                  
12,500,000 shares.  Purchases will be made from time to time            
in the open market, and it is expected that funding of the              
program will come from existing cash, short-term debt and               
proceeds from the sale of the credit card portfolios.  At               
December 31, 1994, approximately 5,000,000 shares had been              
repurchased under this program.                                         

NEW ACCOUNTING STANDARDS:  The American Institute of              
Certified Public Accountants issued Statement of Position               
93-7, "Reporting on Advertising Costs," in December 1993.               
The statement generally requires all advertising costs to be            
expensed in the period in which the costs are incurred or the           
first time the advertising takes place, and is effective for            
years beginning after June 15, 1994.  The statement is not              
anticipated to have any material effect on the results of               
operations or financial condition of the Company.                       

NOTE 3-GAIN ON SALE OF CREDIT OPERATIONS AND EXTENDED SERVICE           
CONTRACTS                                                         
In December 1994 the Company entered into an agreement            
with SPS Transaction Services, Inc., a majority-owned                   
subsidiary of Dean Witter, Discover & Company ("SPS") to sell           
its Computer City and Incredible Universe private label                 
credit card portfolios without recourse.  As a result of the            
agreement, in which Tandy received cash of $85,764,000 and              
will receive a deferred payment of $179,777,000, the Company            
recognized a gain of $35,708,000 in the accompanying                    
Consolidated Statements of Income.  The deferred payment                
amount does not bear interest.  Principal will be paid                  
monthly with the total principal amount of $179,777,000 due             
over a twelve month period.  The Company has discounted the             
deferred payment by $3,477,000 to yield approximately 5% over           
the twelve month payout period.  As a result, the discounted            
deferred payment amount of $176,300,000 is classified as                
current in the accompanying Consolidated Balance Sheet at               
December 31, 1994.  The Company also signed a letter of                 
intent to sell its Radio Shack and McDuff private label                 
credit card portfolios at net book value and without recourse           
to SPS in 1995 including the rights to the securitized                  
accounts (see Note 6).  The agreement for the sale of McDuff            
and Radio Shack portfolios was completed in January 1995,               
subject only to regulatory and rating agency approvals which            
should be forthcoming in the first half of 1995.  Tandy                 
anticipates receiving approximately $290,000,000 (unaudited)            
cash and a deferred payment approximating $80,000,000                   
(unaudited), on terms similar to the deferred payment                   
arrangement mentioned above.                                            

Effective December 1994, the Company transferred all of           
its existing obligations with respect to extended service               
contracts in force at December 31, 1994, with the exception             
of certain contracts aggregating approximately $7,734,000, to           
an unrelated third party.  The unrelated third party                    
contractually assumed all of the Company's legal obligations            
and risk of future loss pursuant to the extended service                
contracts in exchange for $75,059,000, of which $70,702,000             
was paid in December 1994 and $4,357,000 was paid in February           
1995.  As a result, the Company has recognized a gain of                
$55,729,000 associated with this transaction in its                     
accompanying Consolidated Statements of Income.  The Company            
will continue to provide repair services to customers who               
tender products pursuant to the extended service contracts on           
a non-exclusive basis.  The unrelated third party will pay              
the Company competitive market rates for repairs on products            
tendered pursuant to the extended service contracts.                    

The Company will continue to sell extended service                
contracts on behalf of the unrelated third party and will               
receive a commission upon the sale.  The commission will be             
recognized as commission income at the time of sale.                    

NOTE 4-RESTRUCTURING CHARGES                                            
In December 1994, the Company adopted a business                  
restructuring plan to close or convert 233 of the 306 Tandy             
Name Brand stores.  Closed stores will include 151                      
VideoConcepts, 30 McDuff mall stores and 19 McDuff                      
Supercenters.  Thirty-three other mall stores or McDuff                 
Supercenters will be converted to Radio Shack or Computer               
City Express stores.  It is anticipated that a majority of              
these stores will be closed by the end of the first quarter             
of 1995.  Approximately 57 McDuff Supercenters and 16 The               
Edge in Electronics stores will remain open and will become             
part of the Specialty Retail Group of Radio Shack.  A pre-tax           
charge of $89,071,000 was taken in the fourth quarter of                
fiscal 1994 related to the closing and conversion of these              
stores.  The components of the restructuring charge and an              
analysis of the amounts charged against the reserve are                 
outlined in the following table:                                        

(In thousands)                                                          
--------------                                                          
Lease obligations                       $46,682                         
Impairment of fixed assets               17,991                         
Inventory impairment                     16,600                         
Goodwill impairment                       4,222                         
Termination benefits                      1,218                         
Other                                     2,358                         
               -------
Total restructuring reserve charge       89,071                         

Costs charged against the reserve:                                      
Goodwill                               (4,222)                      
Lease payments                         (1,466)                      
               -------
Ending reserve                          $83,383                         
               =======

The lease obligations, termination benefits and conversion        
of 33 stores will require cash outlays, most of which are               
expected to be made during 1995.  The cash outlays will be              
financed by operating cash flows.  Management anticipates               
that pre-tax operating losses during the period of store                
closures will approximate $6,000,000 to $8,000,000                      
(unaudited).                                                            

Sales and operating revenues associated with the closing          
of Tandy Name Brand stores were approximately $261,990,000              
(unaudited) and $271,914,000 (unaudited) for calendar years             
1994 and 1993, respectively, and operating losses                       
approximated $18,125,000 (unaudited) and $15,342,000                    
(unaudited) for calendar 1994 and 1993, respectively.  During           
the fiscal year ended June 30, 1992, sales and operating                
revenues and operating losses from the closing stores were              
approximately $254,531,000 (unaudited) and $10,169,000                  
(unaudited), respectively.  The results of the closing stores           
for the six months ended December 31, 1992 are not presented            
because, due to the seasonal nature of the stores'                      
operations, such results would not be comparable to any of              
the twelve-month results for the other periods presented.  In           
conjunction with this restructuring, 1,425 (unaudited)                  
employees will be terminated, most of which are store                   
employees and managers.  As of December 31, 1994, no                    
employees had been terminated and, accordingly, no                      
termination benefits had been paid.                                     

The Company adopted a plan resulting in business                  
restructuring charges during the six months ended December              
31, 1992 designed to improve the Company's competitiveness              
and future profitability.  The pre-tax charge of $48,000,000            
related primarily to the closing of 110 of the then 432 Tandy           
Name Brand stores, mainly McDuff Supercenters in major market           
areas and, to a lesser extent, the elimination of certain               
product lines.  Some product lines were reduced or eliminated           
after consideration of competitive factors and market trends.           
These stores were closed in the first quarter of 1993.                  
Additional restructuring charges of $39,500,000, related to             
discontinued operations, were recognized in the six months              
ending December 31, 1992 and primarily related to the                   
write-off of goodwill, the rationalization of certain product           
lines and the closure of certain operations.  This                      
restructuring charge is included in the operating loss from             
discontinued operations.                                                

NOTE 5-SHORT-TERM INVESTMENTS                                           
The weighted average interest rate was 5.2% at December           
31, 1994 for short-term investments totaling $80,373,000.               
The weighted average interest rate was 3.2% at December 31,             
1993 for short-term investments totaling $153,839,000.                  

NOTE 6-ACCOUNTS AND NOTES RECEIVABLE                                    
    
                                                        [Enlarge/Download Table]
                                                                                                
Accounts and Notes Receivable                                                                   
<CAPTIONS>                                                                                      
                                                                          December 31,          
(In thousands)                                                       1994             1993      
------------------------------------------------------------------------------------------------
                                                                                                
Gross customer receivable balances of credit operations           $  705,691       $  797,550   
Less securitized customer receivables                               (300,990)        (350,000)  
                                                                  ----------       ----------   
Customer receivable balances of credit operations                    404,701          447,550   
Plus initial direct costs, net of amortization of                                               
  $6,736,000 and $5,302,000, respectively                             10,649            9,202   
                                                                  ----------       ----------   
Net customer receivable balances of credit operations                415,350          456,752   

Deferred payment due on sale of credit operations,                                              
  net of discount of $3,477,000                                      176,300               --   
                                                                  ----------       ----------   
Net receivables related to credit operations                         591,650          456,752   

Trade accounts receivable                                            134,161          114,143   
Receivable and current portion of notes due from InterTAN              8,707           11,650   
Other receivables                                                     55,957           22,238   
Less allowance for doubtful accounts                                 (21,374)         (22,340)  
                                                                  ----------       ----------   
                                                                  $  769,101       $  582,443   
                                                                  ==========       ==========   
                                                                            
                                                            [Enlarge/Download Table]
                                                                                                                     
Allowance for Doubtful Accounts                                                                                      
<CAPTIONS>                                                                                                           
                                                               Year Ended             Six Months Ended    Year Ended 
                                                               December 31,              December 31,       June 30, 
                                                        ---------------------------     --------------     ----------
(In thousands)                                             1994             1993             1992             1992   
---------------------------------------------------------------------------------------------------------------------
                                                                                                                     
Balance at the beginning of the year                    $  22,340        $  21,945        $  17,203        $  16,359 
Provision for credit losses and bad debt included in                                                                 
  selling, general and administrative expense              49,344           55,043           38,735           62,509 
Reserve allocated to securitized receivables                1,748           (1,203)          (2,033)          (1,136)
Reserve on credit accounts sold                            (6,387)              --               --               -- 
Uncollected receivables written off, net of recoveries    (45,671)         (53,445)         (31,960)         (60,529)
                                                        ---------        ---------        ---------        --------- 
Balance at the end of the year related to                                                                            
  continuing operations                                    21,374           22,340           21,945           17,203 

Balance at the end of the year related to                                                                            
  discontinued operations                                      --               --            8,849            8,208 
                                                        ---------        ---------        ---------        --------- 
Balance at the end of the year                          $  21,374        $  22,340        $  30,794        $  25,411 
                                                        =========        =========        =========        ========= 

                                                                            
Effective May 1, 1991, the Company transferred                    
$573,500,000 of its customer receivables to a trust which, in           
turn, on June 18, 1991, sold $350,000,000 of certificates               
representing undivided interests in the trust in a public               
offering.  At December 31, 1994 and 1993, $300,990,000 and              
$350,000,000, respectively, of the certificates were                    
outstanding and, accordingly, were not reflected in the                 
Company's accounts receivable balances.  The fair value of              
the certificates at December 31, 1994 was approximately                 
$301,652,000.  At December 31, 1994, the balance of the                 
receivables in the trust approximated $534,129,000.  The                
Company owns the remaining undivided interest in the trust              
not represented by the certificates and will continue to                
service the receivables for the trust until the sale of Tandy           
Credit to SPS is completed.  The Company has no plans to                
issue additional series of certificates as the Trust is                 
included in the sale of Tandy's remaining private label                 
credit card portfolio balances to SPS in 1995.  For further             
discussion of the sale of the private label credit card                 
portfolios, see Note 3.                                                 

Cash flows generated from the receivables in the trust are        
dedicated to the payment of interest on the certificates                
which have an annual fixed interest rate of 8.25%, absorption           
of defaulted accounts in the trust and payment of servicing             
fees to the Company with any remaining cash flows remitted to           
the Company.  In the event that such excess cash flows are              
not sufficient to absorb defaulted accounts, the Company is             
contingently liable up to a maximum amount of $136,100,000.             

Customer receivable balances of credit operations are             
classified as current assets in accordance with industry                
practice. The Company's private label credit card accounts              
involve revolving rather than installment payments and many             
customers pay off their balances sooner than the contractual            
term.  The repayment terms of the Company's private label               
credit cards are as follows: Radio Shack and McDuff customers           
must pay each month a minimum of 1/33 of any balance greater            
than $1,000, and Incredible Universe and Computer City                  
customers must pay each month a minimum of 1/25 of any                  
balance greater than $1,000.  For any balances less than                
$1,000, the minimum monthly payment ranges between $15 and              
$35 for each customer account.                                          

Interest income related to the Company's credit card              
operations totaled $46,868,000 for the year ended December              
31, 1994, $57,401,000 for the year ended December 31, 1993,             
$31,308,000 for the six months ended December 31, 1992 and              
$62,307,000 for the year ended June 30, 1992.  In 1994 the              
Company received interest income from the IRS reflecting the            
settlement of outstanding tax issues of approximately                   
$9,582,000, as well as interest income earned on notes                  
receivable from AST Research Inc. ("AST") and InterTAN Inc.             
("InterTAN") approximating $5,724,000 and $8,280,000,                   
respectively.                                                           

                                                            [Enlarge/Download Table]
                                                                                                
NOTE 7-PROPERTY, PLANT AND EQUIPMENT                                                            
<CAPTIONS>                                                                                      
                                                                          December 31,          
(In thousands)                                                       1994             1993      
------------------------------------------------------------------------------------------------
                                                                                                
Land                                                              $  22,670        $  32,346    
Buildings                                                           155,334          174,126    
Buildings under capital lease                                        23,873               --    
Furniture, fixtures and equipment                                   430,006          394,242    
Leasehold improvements                                              345,812          314,424    
                                                                  ---------        ---------    
                                                                    977,695          915,138    
Less accumulated depreciation                                       473,108          451,400    
                                                                  ---------        ---------    
                                                                  $ 504,587        $ 463,738    
                                                                  =========        =========    

NOTE 8-OTHER ASSETS                                                     
Other assets include the excess purchase price over net           
tangible assets of businesses acquired of $13,747,000 at                
December 31, 1994 and $18,207,000 at December 31, 1993.                 
These amounts are net of accumulated amortization of                    
$5,035,000, and $4,485,000, respectively.  The balance of               
other assets at December 31, 1994 also includes long-term               
receivables relating to InterTAN , AST and Lika of                      
$128,926,000, net of discount of $16,796,000.  The balance at           
December 31, 1993 includes long-term receivables relating to            
InterTAN and AST of $126,384,000, net of discount of                    
$22,198,000.  See Notes 21 and 22 for a further description             
of the terms of the AST and InterTAN notes receivable.                  

NOTE 9-INDEBTEDNESS AND BORROWING FACILITIES                            
Borrowings payable within one year are summarized in the          
accompanying short-term debt table on page 42.  The                     
short-term debt caption includes primarily domestic seasonal            
borrowings.  The current portion of long-term debt at                   
December 31, 1994 includes $45,000,000 of senior notes and              
$6,208,000 of medium-term notes and other loans.  The current           
portion of long-term debt at December 31, 1993 includes                 
$52,497,000 of medium-term notes and $30,204,000 of bank debt           
and other loans.  The short-term debt at December 31, 1993              
also included $31,739,000 of 10% subordinated debentures due            
June 30, 1994.  These subordinated debentures were called by            
the Company on February 23, 1994 for redemption on April 1,             
1994.  The redemption was at a price equal to 100% of face              
value of the subordinated debentures for a total of                     
$32,431,000.                                                            

Tandy's short-term credit facilities, including revolving         
credit lines, are summarized in the accompanying short-term             
borrowing facilities table found on page 43.  The method used           
to compute averages in the short-term borrowing facilities              
table is based on a daily weighted average computation which            
takes into consideration the time period such debt was                  
outstanding as well as the amount outstanding.  The Company's           
primary source of short-term debt, for which borrowings and             
repayments have been presented net in the Consolidated                  
Statements of Cash Flows, consists of short-term seasonal               
bank debt and commercial paper.  The commercial paper matures           
within ninety days as does the short-term seasonal bank debt.           

A commercial paper program was established during fiscal          
1991 for Tandy and was renewed in May 1994.  The Company has            
$400,000,000 in committed facilities in place for the                   
commercial paper program.  These facilities are to be used              
only if maturing commercial paper cannot be repaid due to an            
inability to sell new paper.  This agreement is composed of             
two facilities--one for $200,000,000 expiring in May 1995 and           
another facility for $200,000,000 expiring in May 1997.                 
Annual commitment fees for the facilities are 2/25 of 1% per            
annum and 1/8 of 1% per annum, respectively, whether used or            
unused.  The commercial paper facilities limit the amount of            
commercial paper that may be outstanding to a maximum of                
$400,000,000.  At December 31, 1994, there were no amounts              
outstanding under the facilities.                                       

Long-term debt, net of current maturities, at December 31,        
1994 and December 31, 1993 totaled $153,318,000 and                     
$186,638,000, respectively.  Included in long-term debt at              
December 31, 1993 is $45,000,000 of 8.69% senior notes due              
January 15, 1995.  These senior notes had been outstanding              
since February 7, 1990.                                                 

Tandy completed a $500,000,000 shelf registration in              
January 1991 of which $400,000,000 was designated for                   
medium-term notes.  Tandy Credit's $400,000,000 shelf                   
registration was amended in October 1990 to add a                       
$200,000,000 Series B medium-term note program.  At December            
31, 1994 available borrowing capacity under Tandy's and Tandy           
Credit's medium-term note programs aggregated $429,200,000.             
Medium-term notes outstanding at December 31, 1994 totaled              
$73,044,000 compared to $125,479,000 at December 31, 1993.              
The weighted average coupon rates of medium-term notes                  
outstanding at December 31, 1994 and 1993 were 8.5% and 8.7%,           
respectively.  The $6,000,000 of Tandy Credit's medium-term             
notes maturing in May and August of 1995 were paid in full in           
February 1995.  Tandy Corporation's medium-term notes mature            
as follows:                                                             

(In thousands)                                                          
-------------------------------------------------                       
Second quarter, 1996 .................... $ 1,500                       
Third quarter, 1996 .....................  11,200                       
Second quarter, 1997 ....................  28,500                       
Second quarter, 1998 ....................  20,000                       
Third quarter, 1998 .....................   5,000                       
Fourth quarter, 1999 ....................   1,000                       
-------------------------------------------------                       

The Company established an employee stock ownership trust         
in June 1990.  Further information on the trust and its                 
related indebtedness, which is guaranteed by the Company, is            
detailed in the discussion of the Tandy Employees Stock                 
Ownership Plan in Note 14.                                              

Long-term borrowings outstanding at December 31, 1994             
mature as follows:                                                      

(In thousands)                                                          
-------------------------------------------------                       
1995 .................................... $61,683                       
1996 ....................................  23,076                       
1997 ....................................  41,399                       
1998 ....................................  37,948                       
1999 ....................................  12,015                       
2000 and thereafter .....................  38,880                       
-------------------------------------------------                       

The fair value of the Company's long-term debt of                 
$191,763,000 (including current portion, but excluding                  
capital leases) is approximately $194,098,000 at December 31,           
1994.                                                                   

                                                            [Enlarge/Download Table]
                                                                                                
Short-Term Debt                                                                                 
<CAPTIONS>                                                                                      
                                                                          December 31,          
                                                                  ------------------------------
(In thousands)                                                       1994             1993      
------------------------------------------------------------------------------------------------
                                                                                                
Short-term bank debt                                              $   78,677       $   90,612   
Current portion of long-term debt                                     51,208           82,701   
Commercial paper, less unamortized discount                           88,775          172,851   
                                                                  ----------       ----------   
                                                                     218,660          346,164   

Current portion of capital lease obligations                             675               --   
Current portion of guarantee of TESOP indebtedness                     9,800           10,050   

10% subordinated debentures due 1994, less                                                      
  unamortized discount of $692,000, at December 31, 1993                  --           31,739   
                                                                  ----------       ----------   
Total short-term debt                                             $  229,135       $  387,953   
                                                                  ==========       ==========   
                                                                            
                                                            [Enlarge/Download Table]
                                                                                                

Long-Term Debt                                                                                  
<CAPTIONS>                                                                                      
                                                                          December 31,          
                                                                  ------------------------------
(In thousands)                                                       1994             1993      
------------------------------------------------------------------------------------------------
                                                                                                
Notes payable with interest rates at December 31, 1994                                          
  ranging from 5.1% to 8.69%                                      $   54,726       $   84,930   
Medium-term notes payable with interest rates at                                                
  December 31, 1994 ranging from 7.25% to 9.67%                       73,044          125,479   
                                                                  ----------       ----------   
                                                                     127,770          210,409   
Less portion due within one year included in                                                    
  current notes payable                                              (51,208)         (82,701)  
                                                                  ----------       ----------   
                                                                      76,562          127,708   
                                                                  ----------       ----------   

Capital lease obligations                                             23,238               --   
Less current portion                                                    (675)              --   
                                                                  ----------       ----------   
                                                                      22,563               --   
                                                                  ----------       ----------   

Guarantee of TESOP indebtedness                                       63,993           68,980   
Less current portion                                                  (9,800)         (10,050)  
                                                                  ----------       ----------   
                                                                      54,193           58,930   
                                                                  ----------       ----------   
Total long-term debt                                              $  153,318       $  186,638   
                                                                  ==========       ==========   
                                                                            
                                                            [Enlarge/Download Table]
                                                                                                                      
Short-Term Borrowing Facilities                                                                                       
<CAPTIONS>                                                                                                            
                                                               Year Ended             Six Months Ended    Year Ended  
                                                               December 31,              December 31,       June 30,  
                                                        ---------------------------     --------------     ---------- 
(In thousands)                                             1994             1993             1992             1992    
--------------------------------------------------------------------------------------------------------------------- 
                                                                                                                      
Domestic seasonal bank credit lines and                                                                               
  bank money market lines:                                                                                            
  Lines available at period end                         $ 1,025,000      $ 1,050,000      $ 1,255,000      $ 1,398,000
  Loans outstanding at period end                       $    77,300      $    90,000      $   240,500      $    15,000
  Compensating balance requirements                            None             None             None             None
  Weighted average interest rate at period end                 6.4%             3.6%             3.6%             4.0%
  Weighted average of loans outstanding                                                                               
    during period                                       $    16,358      $   168,901      $    75,454      $    20,394
  Highest month-end borrowings                          $    88,800      $   253,200      $   255,000      $    50,350
  Weighted average interest rate during period                 5.2%             3.6%             3.6%             5.1%

Short-term foreign credit lines:                                                                                      
  Lines available at period end                         $   149,084      $   143,685      $   186,841      $   340,704
  Loans outstanding at period end                       $     1,377      $       612      $    21,257      $    13,774
  Compensating balance requirements                            None             None             None             None
  Weighted average interest rate at period end                 7.4%             6.7%             9.1%            11.1%
  Weighted average of loans outstanding                                                                               
    during period                                       $     3,563      $     1,956      $    22,590      $    42,638
  Highest month-end borrowings                          $     5,192      $     4,382      $    29,260      $    61,637
  Weighted average interest rate during period                 5.5%             4.0%             9.7%            13.9%

Letters of credit and banker's acceptance lines                                                                       
  of credit:                                                                                                          
  Lines available at period end                         $   475,000      $   526,000      $   442,785      $   410,000
  Acceptances outstanding at period end                        None             None             None             None
  Compensating balance requirements                            None             None             None             None
  Letters of credit open against outstanding                                                                          
    purchase orders at period end                       $    91,645      $   124,701      $   128,798      $   232,791

Commercial paper credit facilities:                                                                                   
  Commercial paper outstanding at period end            $    88,775      $   172,851      $    63,879      $   109,295
  Weighted average interest rate at period end                 6.2%             3.5%             3.8%             3.8%
  Weighted average of commercial paper                                                                                
    outstanding during period                           $    37,878      $   174,494      $   112,000      $    80,601
  Highest month-end borrowings                          $   177,100      $   295,500      $   312,250      $   201,900
  Weighted average interest rate during period                 4.8%             3.5%             3.5%             5.0%
                                                                            
NOTE 10-LEASES                                                          
Tandy leases rather than owns most of its facilities.  The        
Radio Shack stores comprise the largest portion of Tandy's              
leased facilities.  The Radio Shack, Tandy Name Brand and               
Computer City stores are located primarily in major shopping            
malls, shopping centers or freestanding facilities owned by             
other companies.  The Company owns three of the nine                    
Incredible Universe buildings.  The store leases are                    
generally based on a minimum rental plus a percentage of the            
store's sales in excess of a stipulated base figure.  Tandy             
also leases distribution centers and office space.  In 1994,            
under a sale and leaseback agreement with an unrelated third            
party, the Company sold certain Incredible Universe stores              
for approximately $52,719,000 and leased the properties back            
under a lease agreement which matures on September 9, 1999.             
The transaction produced a gain of approximately $1,664,000             
which was deferred and is being amortized over the life of              
the lease periods.  The Company does not have any continuing            
involvement under the sale-leaseback transaction.  The future           
minimum lease payments are included in the table below.                 

Future minimum rent commitments at December 31, 1994 for          
all long-term noncancelable leases (net of immaterial amounts           
of sublease rent income) are included in the following table.           

(In thousands)            Operating Leases     Capital Leases           
-------------------------------------------------------------           
1995 ....................     $147,803             $ 4,051              
1996 ....................      141,224               4,051              
1997 ....................      124,564               4,089              
1998 ....................      107,232               4,195              
1999 ....................       88,641               4,422              
2000 and thereafter .....      336,975              43,325              
                                     -------
Total minimum lease payments                        64,133              
Less: Amount representing interest                 (40,895)             
                                     -------
Present value of net minimum lease payments        $23,238              
                                     =======

                                                            [Enlarge/Download Table]
                                                                                                                       

Rent Expense                                                                                                           
<CAPTIONS>                                                                                                             
                                                               Year Ended             Six Months Ended    Year Ended   
                                                               December 31,              December 31,       June 30,   
                                                        ---------------------------     --------------     ----------  
(In thousands)                                             1994             1993             1992             1992     
---------------------------------------------------------------------------------------------------------------------  
                                                                                                                       
Minimum rents                                           $   210,443      $   200,183      $   102,986      $   201,794 
Contingent rents                                              2,947            2,644            2,456            3,938 
Sublease rent income                                           (968)            (426)            (114)          (1,059)
                                                        -----------      -----------      -----------      ----------- 
Total rent expense                                      $   212,422      $   202,401      $   105,328      $   204,673 
                                                        ===========      ===========      ===========      =========== 
                                                                            
                                                            [Enlarge/Download Table]
                                                                                                       

Space Owned and Leased (Unaudited)                                                                     
<CAPTIONS>                                                                                             
                                                      Approximate Square Footage                       
                                                           at December 31,                             
                                            1994                                   1993                
                             -----------------------------------    -----------------------------------
(In thousands)                 Owned       Leased        Total        Owned       Leased        Total  
-------------------------------------------------------------------------------------------------------
                                                                                                       
Retail                                                                                                 
  Radio Shack                   --        10,806       10,806         --         10,767       10,767   
  Computer City                 --         1,567        1,567         --            940          940   
  Incredible Universe          300           609          909        300             --          300   
  Tandy Name Brand              --         1,509        1,509         --          1,649        1,649   
  Other                        269            --          269        275             --          275   
                             -----        ------       ------      -----         ------       ------   
                               569        14,491       15,060        575         13,356       13,931   

Manufacturing                  641           212          853        641            212          853   
Warehouse and office         3,357         2,310        5,667      3,384          1,957        5,341   
                             -----        ------       ------      -----         ------       ------   
                             4,567        17,013       21,580      4,600         15,525       20,125   
                             =====        ======       ======      =====         ======       ======   
                                                                            
                                                            [Enlarge/Download Table]
                                                                                                

NOTE 11-ACCRUED EXPENSES                                                                        
<CAPTIONS>                                                                                      
                                                                          December 31,          
(In thousands)                                                       1994             1993      
------------------------------------------------------------------------------------------------
                                                                                                
Payroll and bonuses                                               $   68,974       $   57,600   
Sales and payroll taxes                                               58,168           44,790   
Insurance                                                             52,394           48,609   
Deferred service contract income                                       7,734          102,223   
Rent                                                                  25,203           22,093   
Advertising                                                           38,301           25,546   
Interest expense                                                       5,914            7,358   
Restructuring reserve                                                 83,383            6,790   
Other                                                                 36,724           34,048   
                                                                  ----------       ----------   
                                                                  $  376,795       $  349,057   
                                                                  ==========       ==========   
                                                                            
NOTE 12-INCOME TAXES                                                    
The components of the provision for income taxes and a            
reconciliation of the U.S. statutory tax rate to the                    
Company's effective income tax rate are given in the                    
accompanying tables.                                                    

                                                            [Enlarge/Download Table]
                                                                                                                       

Income Tax Expense                                                                                                     
<CAPTIONS>                                                                                                             
                                                               Year Ended             Six Months Ended    Year Ended   
                                                               December 31,              December 31,       June 30,   
                                                        ---------------------------     --------------     ----------- 
(In thousands)                                             1994             1993             1992             1992     
---------------------------------------------------------------------------------------------------------------------- 
                                                                                                                       
Current                                                                                                                
  Federal                                               $   109,325      $   109,543      $    63,869      $   118,552 
  State                                                       8,949            8,543            1,482            4,822 
  Foreign                                                     3,292            1,781            1,003            3,530 
                                                        -----------      -----------      -----------      ----------- 
                                                            121,566          119,867           66,354          126,904 
                                                        -----------      -----------      -----------      ----------- 
Deferred                                                                                                               
  Federal                                                    12,127           (4,344)         (31,123)          (5,619)
  Foreign                                                     1,512               --                5           (1,500)
                                                        -----------      -----------      -----------      ----------- 
                                                             13,639           (4,344)         (31,118)          (7,119)
                                                        -----------      -----------      -----------      ----------- 
Total income tax expense                                $   135,205      $   115,523      $    35,236      $   119,785 
                                                        ===========      ===========      ===========      =========== 
                                                                            
                                                            [Enlarge/Download Table]
                                                                                                                      
Statutory vs. Effective Tax Rate                                                                                      
<CAPTIONS>                                                                                                            
                                                               Year Ended             Six Months Ended    Year Ended  
                                                               December 31,              December 31,       June 30,  
                                                        ---------------------------     --------------     ---------- 
(In thousands)                                             1994             1993             1992             1992    
--------------------------------------------------------------------------------------------------------------------- 
                                                                                                                      
Components of pretax income from continuing operations:                                                               

United States                                           $   357,325      $   298,506      $    97,874      $   325,584
Foreign                                                       2,215           12,649            5,043            4,914
                                                        -----------      -----------      -----------      -----------
Income before income taxes                                  359,540          311,155          102,917          330,498
Statutory tax rate                                            x 35%            x 35%            x 34%            x 34%
                                                        -----------      -----------      -----------      -----------
Federal income tax at statutory rate                        125,839          108,904           34,992          112,369
State income taxes, less federal income                                                                               
   tax benefit                                                5,817            5,553              978            3,183
Other, net                                                    3,549            1,066             (734)           4,233
                                                        -----------      -----------      -----------      -----------
Total income tax expense                                $   135,205      $   115,523      $    35,236      $   119,785
                                                        ===========      ===========      ===========      ===========

Effective tax rate                                           37.60%           37.13%           34.24%           36.24%
                                                        ===========      ===========      ===========      ===========

                                                                            
The IRS Dallas field office is reviewing the Company's            
1987-1989 tax returns.  The review in Dallas could lead to              
referral to the IRS National office.  The resolution of this            
matter could result in additional taxes and interest to the             
Company related to the spin-off of InterTAN and raises                  
questions about the private letter rulings issued by the IRS            
regarding the spin-off and certain other tax matters.                   
Although aggregate additional taxes involved in these                   
transactions could potentially range from $0 to $46 million,            
based on the advice of the Company's independent tax                    
advisors, the Company believes it would prevail if any tax              
litigation had to be instituted.  Any ultimate tax assessment           
would also include interest.  In any event the Company                  
believes the ultimate resolution would have no material                 
impact on the Company's financial condition.                            

In January 1993, the Company adopted FAS No. 109.  The            
adoption of FAS 109 changes the Company's method of                     
accounting for income taxes from the deferred method ("APB              
11") to an asset and liability approach.  Previously, the               
Company deferred the past tax effects of timing differences             
between financial reporting and taxable income.  The asset              
and liability approach requires the recognition of deferred             
tax liabilities and assets for the expected future tax                  
consequences of temporary differences between the carrying              
amounts and the tax bases of assets and liabilities.                    

The adjustments to the January 1, 1993 balance sheet to           
adopt FAS 109 totaled $13,014,000.  Approximately $9,786,000            
of this adjustment related to continuing operations and the             
remaining $3,228,000 was from discontinued operations.  The             
aggregate amount of $13,014,000 was reflected in 1993 net               
income as the cumulative effect of change in accounting                 
principle.  It primarily represents the impact of adjusting             
deferred taxes to reflect the then current tax rate of 34% as           
opposed to the higher tax rates that were in effect when the            
deferred taxes originated.  The Company subsequently                    
increased its U.S. deferred tax asset in 1993 as a result of            
legislation enacted during 1993 which increased the corporate           
tax rate from 34% to 35%.  Deferred tax assets and                      
liabilities as of December 31, 1994 and December 31, 1993               
were comprised of the following:                                        

                                                            [Enlarge/Download Table]
                                                                                                

Deferred Tax Assets                                                                             
-------------------                                                                             
<CAPTIONS>                                                                                      
                                                                          December 31,          
(In thousands)                                                       1994             1993      
------------------------------------------------------------------------------------------------
                                                                                                
Bad debt reserve                                                  $   13,268       $   14,268   
Intercompany profit elimination                                        4,849            6,654   
Deferred service contract income                                       3,333           41,290   
Restructuring reserves                                                24,680            3,362   
Insurance reserves                                                     8,484            5,607   
Loss carryforwards and carrybacks                                         --            7,231   
Foreign tax credits                                                    4,396            4,396   
Other                                                                  4,564               --   
                                                                  ----------       ----------   
                                                                      63,574           82,808   
Valuation allowance                                                   (4,396)          (4,396)  
                                                                  ----------       ----------   
  Total deferred tax assets                                           59,178           78,412   
                                                                  ----------       ----------   
Deferred Tax Liabilities                                                                        
------------------------                                                                        
Inventory adjustments, net                                             6,963            8,445   
Depreciation and amortization                                          5,886            8,322   
Credit card origination costs                                          4,410            3,221   
Deferred taxes on foreign operations                                   7,783            4,275   
Other                                                                     --            4,269   
                                                                  ----------       ----------   
    Total deferred tax liabilities                                    25,042           28,532   
                                                                  ----------       ----------   
   Net Deferred Tax Assets                                        $   34,136       $   49,880   
                                                                  ==========       ==========   
                                                                            
NOTE 13-STOCK PURCHASE AND SAVINGS PLANS                                
Stock purchase and savings plans are offered by Tandy             
Corporation to its employees.  These plans are designed to              
provide employees with a consistent investment program which            
provides for their retirement and an opportunity to                     
participate in the Company's growth.                                    

TANDY CORPORATION STOCK PURCHASE PROGRAM ("SPP").  The SPP is           
available to most employees who have been employed at least             
six months.  Participants may contribute 1% to 10% of annual            
compensation.  The Company matches 40%, 60% or 80% of the               
employee's contribution depending on the length of the                  
employee's participation in the SPP.  Tandy's contributions             
to the SPP were $16,881,000 and $18,955,000 for the calendar            
years ended December 31, 1994 and 1993, respectively, and               
$8,756,000 for the six months ended December 31, 1992.  For             
fiscal 1992 the Company's contributions were $20,253,000.               

TANDY EMPLOYEES DEFERRED SALARY AND INVESTMENT PLAN ("DIP").            
An eligible employee electing to participate in the DIP may             
defer 5% of annual compensation, subject to certain                     
limitations established by the Tax Reform Act of 1986.  The             
Company pays this amount into the plan as a deferred salary             
contribution for the account of the employee.  The employee's           
5% contribution is considered deferred compensation and is              
not taxed to the employee as long as it remains in the plan.            
Beginning October 1990, the Company began making                        
contributions to the newly formed employee stock ownership              
plan described in Note 14 in lieu of the matching                       
contributions to the DIP.  To participate in the employee               
stock ownership plan, employees must continue to make                   
deferred salary contributions to the DIP.  In June 1992, the            
Company received a determination letter ruling that the DIP             
is a qualified 401(k) plan.  An administrative committee                
appointed by the Board of Directors invests the DIP's assets            
primarily in Tandy securities.                                          

NOTE 14-TANDY EMPLOYEES STOCK OWNERSHIP PLAN ("TESOP")                  
As a continuation of the Company's programs to encourage          
employee ownership of Tandy stock, the Company formed the               
TESOP on June 28, 1990.  On July 31, 1990, the TESOP trustee            
borrowed $100,000,000 at an interest rate of 9.34% with                 
varying semi-annual principal payments through June 30, 2000.           
On December 15, 1994, the TESOP entered into an agreement               
with an unrelated third party to refinance a portion of the             
TESOP's indebtedness by borrowing $5,063,000 at an interest             
rate of 8.76% to retire a portion of the original                       
$100,000,000 indebtedness.  The maturity date of this                   
borrowing is December 30, 2000.  The TESOP plans to borrow an           
additional $11,630,000 over the next five years.  The final             
maturity on the additional borrowings is projected to be                
December 30, 2002.  Dividend payments and contributions from            
Tandy will be used to repay the indebtedness.  Because Tandy            
has guaranteed the repayment of these notes, the indebtedness           
of the TESOP is recognized as a long-term obligation in the             
accompanying consolidated balance sheet.  An offsetting                 
charge has been made in the stockholders' equity section of             
the accompanying consolidated balance sheet to reflect                  
unearned compensation related to the TESOP.                             

The TESOP trustee used the proceeds from the issuance of          
the 1990 notes to purchase 100,000 shares of Series B TESOP             
Convertible Preferred Stock (the "TESOP Preferred Stock")               
from Tandy at a price of $1,000 per share.  Each share of               
such stock is convertible into 21.768 shares of Tandy common            
stock.  The annual cumulative dividend on TESOP Preferred               
Stock is $75.00 per share, payable semi-annually.  This                 
series of stock has certain liquidation preferences and may             
be redeemed by Tandy after July 1, 1994 at specified                    
premiums.                                                               

During the term of the TESOP, the TESOP Preferred Stock           
will be allocated to the participants annually based on the             
total debt service made on the indebtedness.  In 1994 the               
TESOP was amended to provide for quarterly withdrawals by               
participants and an annual allocation of TESOP Preferred                
Stock to participants.  The first annual allocation will                
occur on March 31, 1995.  The allocations of preferred stock            
to the individual participants' accounts are determined                 
according to the terms of the TESOP.  As vested participants            
withdraw from the TESOP, payments are made in cash or Tandy             
common stock.  The preferred stock has a face value of $1,000           
per share and the Company is obligated to redeem the                    
preferred stock at the higher of the appraised value or                 
$1,000 per share in the event of a participant's withdrawal.            
The Company has the option to redeem the preferred stock in             
either cash or common stock.  Forfeited shares are returned             
to the TESOP and allocated to the accounts of other                     
participants.  In June 1992 the Company received a                      
determination letter ruling from the IRS that the TESOP was a           
qualified employee stock ownership plan.                                

In fiscal 1991 Tandy recorded, as a component of                  
stockholders' equity, $100,000,000 of unearned compensation             
to reflect the value of the TESOP Preferred Stock sold to the           
TESOP.  As shares of the TESOP Preferred Stock are allocated            
to the TESOP participants, compensation expense is recorded             
and unearned compensation is reduced.  Interest expense on              
the TESOP notes is also recognized as a cost of the TESOP.              
The compensation component of the TESOP expense is reduced by           
the amount of dividends accrued on the TESOP Preferred Stock            
with any dividends in excess of the compensation expense                
reflected as a reduction of interest expense.  During the               
year ended December 31, 1994, the compensation and interest             
costs related to the TESOP before the reduction for the                 
allocation of dividends were $10,008,000 and $6,202,000,                
respectively.  The compensation and interest costs related to           
the TESOP before the reduction for the allocation of                    
dividends were $9,605,000 and $7,195,000, respectively,                 
during the year ended December 31, 1993.  During the six                
months ended December 31, 1992, the compensation and interest           
costs related to the TESOP before the reduction for the                 
allocation of dividends were $4,266,000 and $3,969,000,                 
respectively.  Such amounts for fiscal 1992 were $8,233,000             
and $8,526,000, respectively.  Contributions from Tandy to              
the TESOP for the years ended December 31, 1994 and 1993                
totaled $11,189,000 and $17,895,000, respectively, including            
the $6,777,000 and $7,135,000 of dividends paid on the TESOP            
Preferred Stock.  Contributions for the six months ended                
December 31, 1992 and the year ended June 30, 1992 totaled              
$9,269,000 and $16,926,000, respectively, including the                 
$3,665,000 and $7,441,000 of dividends paid on the TESOP                
Preferred Stock.                                                        

At September 30, 1994, 31,020 shares of TESOP Preferred           
Stock had been released and allocated to participants'                  
accounts in the TESOP (including 10,288 shares which had been           
withdrawn by participants).  At December 31, 1994, 8,142                
shares of TESOP Preferred Stock were released for allocation            
to participants at March 31, 1995.  At December 31, 1994,               
60,838 shares of TESOP Preferred Stock were available for               
later release and allocation to participants over the                   
remaining life of the TESOP.                                            

Under the terms of Tandy's guarantee of the notes, Tandy          
is obligated to make semiannual contributions to the TESOP to           
enable it to pay principal and interest on the debt                     
securities.  Tandy has fully and unconditionally guaranteed             
the TESOP's payment obligations, whether at maturity, upon              
redemption, upon declaration of acceleration or otherwise.              
The holders of the notes have no recourse against the assets            
of the TESOP except in the event that the TESOP defaults on             
payments due and then only to the extent that the TESOP holds           
cash payments made by Tandy to the TESOP to enable it to meet           
its obligations under the notes and any earnings attributable           
to such contributions.  No amounts were in default as of                
December 31, 1994.  The TESOP fiscal year ends on March 31.             
At March 31, 1994, the TESOP held as assets $95,786,000 of              
TESOP Preferred Stock and $4,186,000 of receivables and had             
liabilities comprised of the remaining principal on the notes           
of $68,980,000 and accrued interest payable on the notes of             
$1,611,000, resulting in net assets of $29,381,000.                     

NOTE 15-STOCK OPTIONS AND PERFORMANCE AWARDS                            
1985 Stock Option Plan ("SOP")                                      
------------------------------                                      
Under the 1985 SOP, as amended, options to acquire up to          
2,000,000 fully registered shares of Tandy's common stock may           
be granted to officers and key management employees of the              
Company.  The Organization and Compensation Committee (the              
"Committee") has sole discretion in determining whether to              
grant options, who shall receive them, the number of options            
granted to any individual and whether an option will be an              
incentive stock option or a nonstatutory stock option.  The             
term of incentive stock options may not exceed 10 years and             
the term of nonstatutory stock options may not exceed a term            
of 10 years plus one month.  No option may be exercised                 
within one year of the date of grant and then may be                    
exercised in specified installments only after stated                   
intervals of time.                                                      

The maximum amount that may be exercised at the expiration        
of each of the first through fifth anniversaries of the                 
nonstatutory stock options is 20%.  On each of the first                
three anniversaries of the date of grant of the incentive               
stock options, one-third of each individual's options become            
exercisable.  Upon termination of employment, the optionee              
must exercise all currently vested options by the earlier of            
the option expiration date(s) or three months from the date             
of termination of employment or forfeit such options, except            
that upon retirement at age 55 or older the three months is             
extended to 12 months in the case of nonstatutory stock                 
options only.  Notwithstanding the grant of options initially           
exercisable in installments, upon the termination of                    
employment as a result of death or total disability of an               
optionee, all options then held shall for a period of 12                
months, subject to earlier termination at the fixed                     
expiration date, become immediately exercisable without                 
regard to dates at which the installments are exercisable.              
Upon the retirement of an optionee at age 55 or older, the              
Committee may in its discretion accelerate the dates at which           
remaining installments of options may be exercised to the               
date of retirement.  In the event of a change in control, all           
outstanding options become immediately exercisable for the              
full number of shares subject to options.  The option price             
is determined by the Committee at the time the option is                
granted, but the option price will not be less than 100% of             
the fair market value of the stock on the date of grant.                
Since the option prices have been fixed at the market price             
on the date of grant, no compensation has been charged                  
against earnings by the Company.  Authorized and unissued               
shares or treasury stock may be issued to participants when             
options are exercised.                                                  

The SOP provides for adjustments to be made to options            
outstanding under the plan in order to prevent dilution of              
options upon the occurrence of a number of events, including            
the distribution of shares of a subsidiary of the Company to            
its stockholders.                                                       

Under the SOP there were 1,290,974 vested options which           
could have been exercised for a total price of $44,460,052 at           
December 31, 1994.  Shares available for additional grants              
under the SOP were 242,626 at December 31, 1994.                        

1993 Incentive Stock Plan ("ISP")                                   
---------------------------------                                   
During March 1993, the Board adopted the ISP, as amended.         
The ISP is administered by the Committee.  A total of                   
3,000,000 shares of the Company's common stock were reserved            
for issuance under the ISP and have been registered with the            
Securities and Exchange Commission.                                     

The ISP permits the grant of incentive stock options              
("ISOs"), nonstatutory stock options (options which are not             
ISOs) ("NSOs"), stock appreciation rights ("SARs"),                     
restricted stock, performance units or performance shares.              

Grants of options under the ISP shall be for terms                
specified by the Committee, except that the term shall not              
exceed 10 years (5 years if granted to a 10% or more                    
stockholder of the Company's common stock).  Subject to the             
discretion of the Committee, options become exercisable in              
such installments and at such times as specified in the                 
option agreements, payments for shares issuable upon exercise           
of an option may be made in cash, common stock, or a                    
combination of both.  The amount payable upon exercise of a             
SAR may be made at the discretion of the Committee either in            
cash or common stock or in a combination of cash and common             
stock.  Provisions of the ISP generally provide that in the             
event of a change in control all options become immediately             
and fully exercisable and all restrictions on restricted                
stock lapse.                                                            

As part of the ISP, each non-employee director of the             
Company receives a grant of NSOs for 3,000 shares of the                
Company's common stock on the first business day of September           
of each year ("Director Options").  Director Options have an            
exercise price of 100% of the fair market value of the                  
Company's common stock on the trading day prior to the date             
of grant, vest as to one-third of the shares annually on the            
first three anniversary dates of the date of grant and expire           
10 years after the date of grant.  The first grant of the               
Director Options was made on September 1, 1993.                         

The exercise price of an option (other than a Director            
Option) is determined by the Committee, provided that the               
exercise price shall not be less than 100% of the fair market           
value of a share of the Company's common stock on the date of           
grant.                                                                  

At December 31, 1994 there were 122,290 vested options            
which could have been exercised for a total exercise price of           
$4,584,645 and 2,258,200 shares available for additional                
grants under the ISP.  The ISP shall terminate on the tenth             
anniversary of the day preceding the date of its adoption by            
the Board and no option or award shall be granted under the             
ISP thereafter.                                                         

Stock option activity from June 30, 1991 through December         
31, 1994, including GRiD options, is summarized in the                  
accompanying chart.                                                     

                                                            [Enlarge/Download Table]
                                                                                                       

Stock Option Activity                                                                                  
<CAPTIONS>                                                                                             
                                                                                             Aggregate 
                                                          Number        Option Price         Exercised 
(In thousands, except per share amounts)                of Shares        Per Share             Value   
-------------------------------------------------------------------------------------------------------
                                                                                                       
June 30, 1991 ................................            1,414         $5.94--$47.50         $ 49,651 
Options granted ..............................              358        $24.25--$28.19           10,057 
Options exercised ............................              (20)        $5.94--$17.81             (119)
Options cancelled ............................              (45)        $5.94--$47.50           (1,574)
                                                          -----                               -------- 
June 30, 1992 ................................            1,707         $5.94--$47.50           58,015 
Options granted ..............................              254            $30.38                7,716 
Options exercised ............................               (9)            $5.94                  (52)
Options cancelled ............................              (12)        $5.94--$47.50             (353)
                                                          -----                               -------- 
December 31, 1992 ............................            1,940         $5.94--$47.50           65,326 
Options granted ..............................              368        $30.00--$37.25           13,343 
Options exercised ............................             (182)        $5.94--$47.50           (5,341)
Options cancelled ............................             (162)        $5.94--$47.50           (5,533)

                                                          -----                               -------- 
December 31, 1993 ............................            1,964        $25.06--$46.13           67,795 
Options granted ..............................              398        $37.00--$44.19           17,401 
Options exercised ............................              (76)       $25.06--$41.94           (2,465)
Options cancelled ............................             (110)       $25.06--$46.13           (4,068)
                                                          -----                               -------- 
December 31, 1994 ............................            2,176        $25.06--$45.88         $ 78,663 
                                                          =====                               ======== 

                                                                            
NOTE 16-PREFERRED SHARE PURCHASE RIGHTS                                 
In August 1986 the Board of Directors adopted a                   
stockholder rights plan and declared a dividend of one right            
for each outstanding share of Tandy common stock.  The Board            
amended the rights plan in June 1988 and amended and restated           
the rights plan in June 1990.  The rights, which will expire            
on June 22, 2000, are currently represented by the common               
stock certificates and when they become exercisable will                
entitle holders to purchase one one-thousandth of a share of            
Tandy Series A Junior Participating Preferred Stock for an              
exercise price of $140 (subject to adjustment).  The rights             
will become exercisable and will trade separately from the              
common stock only upon the date of public announcement that a           
person, entity or group ("Person") has acquired 15% or more             
of Tandy's outstanding common stock without the prior consent           
or approval of the disinterested directors ("Acquiring                  
Person") or ten days after the commencement or public                   
announcement of a tender or exchange offer which would result           
in any person becoming an Acquiring Person.  In the event               
that any person becomes an Acquiring Person, the rights will            
be exercisable for 60 days thereafter for Tandy common stock            
with a prior market value (as determined under the rights               
plan) equal to twice the exercise price.  In the event that,            
after any person becomes an Acquiring Person, the Company               
engages in certain mergers, consolidations, or sales of                 
assets representing 50% or more of its assets or earning                
power with an Acquiring Person (or persons acting on behalf             
of or in concert with an Acquiring Person) or in which all              
holders of common stock are not treated alike, the rights               
will be exercisable for common stock of the acquiring or                
surviving company with a prior market value (as determined              
under the rights plan) equal to twice the exercise price.               
The rights will not be exercisable by any Acquiring Person.             
The rights are redeemable at a price of $.05 per right prior            
to any person becoming an Acquiring Person or, under certain            
circumstances, after the expiration of the 60-day period                
described above, but the rights may not be redeemed or the              
rights plan amended for 180 days following a change in a                
majority of the members of the Board (or if certain                     
agreements are entered into during such 180-day period).                

NOTE 17-TERMINATION PROTECTION PLANS                                    
In August 1990, the Board of Directors of the Company             
approved termination protection plans and amendments to                 
various other benefit plans including the stock purchase                
program and deferred salary and investment plan described in            
Note 13.  These plans provide for defined termination                   
benefits to be paid to eligible employees of the Company who            
have been terminated, without cause, following a change in              
control of the Company (as defined).  In addition, for a                
certain period of time following employee termination, the              
Company, at its expense, must continue to provide on behalf             
of the terminated employee certain employment benefits.  In             
general, during the twelve months following a change in                 
control, the Company may not terminate or change existing               
employee benefit plans in any way which will affect accrued             
benefits or decrease the rate of the Company's contribution             
to the plans.                                                           

NOTE 18-ISSUANCE OF SERIES C PERCS AND TENDER OFFER                     
In February 1992, the Company issued 15,000,000 depositary        
shares of Series C Conversion Preferred Stock ("Series C                
PERCS") at $29.50 per depositary share (equivalent to                   
$2,950.00 for each Series C PERCS).  Each of the depositary             
shares represents ownership of 1/100th of a share of Series C           
PERCS.  The annual dividend for each depositary share is                
$2.14 (based on the annual dividend rate for each Series C              
PERCS of $214.00).  On April 15, 1995, each of the depositary           
shares will automatically convert into (i) one share of Tandy           
common stock (equivalent to 100 shares for each Series C                
PERCS) subject to adjustment in certain events and (ii) the             
right to receive on such date an amount in cash equal to all            
accrued and unpaid dividends thereon.  The liquidation                  
preference for each depositary share is $29.50 (equivalent to           
$2,950.00 for each Series C PERCS) plus any accrued and                 
unpaid dividends.                                                       

Tandy announced on January 23, 1995 that it had exercised         
its right to call all the issued and outstanding PERCS for              
conversion on March 10, 1995, prior to its mandatory                    
conversion date of April 15, 1995.  For each PERCS depositary           
share redeemed, 0.787757 Tandy common shares will be issued             
for an aggregate of approximately 11,816,000 shares.  In                
addition, each PERCS depositary share will receive a dividend           
in cash of $0.321 representing the accrued dividend from                
January 16, 1995 through the redemption date of March 10,               
1995.                                                                   

NOTE 19-SUPPLEMENTAL CASH FLOW INFORMATION                              
The effects of changes in foreign exchange rates on cash          
balances have not been material.  Cash flows from operating             
activities included cash payments as follows:                           

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<CAPTIONS>                                                                                                           
                                                               Year Ended             Six Months Ended    Year Ended 
                                                               December 31,              December 31,       June 30, 
                                                        ---------------------------     --------------     ----------
(In thousands)                                             1994             1993             1992             1992   
---------------------------------------------------------------------------------------------------------------------
                                                                                                                     
Interest paid                                           $   31,440       $   47,223       $   29,480       $   59,214
Income taxes paid                                       $   84,516       $  105,313       $   62,466       $  135,736

                                                                            
A capital lease obligation of $23,873,000 was recorded            
during the year for the lease of certain retail stores.                 

NOTE 20-LITIGATION                                                      
The Company is a defendant in a consolidated action             
titled "O'Sullivan Industries Holdings, Inc. Securities                 
Litigation", which was commenced in 1994 and is currently               
pending before the United States District Court for the                 
Western District of Missouri.  The plaintiffs seek damages in           
an unspecified amount alleging that O'Sullivan's initial                
public offering prospectus, certain press releases and other            
materials contained material misrepresentations and                     
omissions.  They have also named O'Sullivan, O'Sullivan's               
officers and directors, and the underwriters as defendants.             
Tandy believes that the lawsuit is totally without merit and            
is defending itself vigorously.  It further believes that               
even though an adverse resolution of the litigation may have            
a negative impact on its results of operation in the year of            
resolution, resolution will not have a material adverse                 
effect on its financial condition or liquidity.                         

Tandy has various claims, lawsuits, disputes with third           
parties, investigations and pending actions involving                   
allegations of negligence, product defects, discrimination,             
infringement of intellectual property rights, securities                
matters, tax deficiencies, violations of permits or licenses,           
and breach of contract and other matters against the Company            
and its subsidiaries incident to the operation of its                   
business.  The liability, if any, associated with these                 
matters was not determinable at December 31, 1994.  While               
certain of these matters involve substantial amounts, and               
although occasional adverse settlements or resolutions may              
occur and negatively impact earnings in the year of                     
settlement, it is the opinion of management that their                  
ultimate resolution will not have a materially adverse effect           
on Tandy's financial position.                                          

NOTE 21-DISCONTINUED OPERATIONS                                         
On June 25, 1993, the Board of Directors of Tandy adopted         
a formal plan of divestiture under which the Company would              
sell its computer manufacturing and marketing businesses, the           
O'Sullivan Industries, Inc. ("O'Sullivan") ready-to-assemble            
furniture manufacturing and related marketing business, the             
Memtek Products division and the Lika printed circuit board             
business.                                                               

Computer Manufacturing.  The Company closed the sale of       
the computer manufacturing and marketing businesses to AST        
Research, Inc. ("AST") on July 13, 1993.  In accordance           
with the terms of the definitive agreement between Tandy          
and AST, Tandy received $15,000,000 upon closing of the           
sale.  The balance of the purchase price of $90,000,000 is        
payable by a promissory note.  The principal amount of            
this promissory note is payable by July 12, 1996; interest        
is accrued and paid annually.  The interest rate on the           
promissory note is currently 4.94% per annum and is               
adjusted annually, not to exceed 5% per annum.  The terms         
of the promissory note stipulate that the outstanding             
principal balance may be paid at maturity at AST's option         
in cash or the common stock of AST.  However, at Tandy's          
option not more than 50% of the initial principal balance         
may be paid in common stock of AST.  The promissory note          
is supported by a standby letter of credit in the amount          
of the lesser of $100,000,000 or 70% of the outstanding           
principal amount of the promissory note.  At December 31,         
1994, the standby letter of credit approximated                   
$67,704,000.                                                      

In October 1993, the Company sold its computer marketing      
operations in France to AST, together with certain other        
multimedia assets and additional Swedish inventory, in          
return for an increase in the principal amount of the           
promissory note described above to $96,700,000.  The            
Company has discounted this note by $2,000,000 and the          
discount will be recognized as interest using the               
effective interest rate method over the life of the note.       

Memtek Products.  On November 10, 1993, the Company           
executed a definitive agreement with Hanny Magnetics              
(B.V.I.) Limited, a British Virgin Islands corporation            
("Hanny"), to purchase certain assets of the Company's            
Memtek Products operations, including the license                 
agreement with Memorex Telex, N.V.  for the use of the            
Memorex trademark on licensed consumer electronics                
products.  This sale closed on December 16, 1993.  Hanny          
is a subsidiary of Hanny Magnetics (Holdings) Limited, a          
Bermuda corporation, listed on the Hong Kong Stock                
Exchange.  Proceeds from this sale aggregated                     
$69,602,000.  The $7,102,000 receivable which remained at         
December 31, 1993 was paid in 1994.                               

O'Sullivan Industries.  On January 27, 1994 the Company       
announced that it had reached an agreement with the               
underwriters to sell all the common stock of O'Sullivan           
Industries Holdings, Inc., the parent company of                  
O'Sullivan, to the public at $22 per share.  The net              
proceeds realized by Tandy in the initial public offering,        
together with a $40,000,000 cash dividend from O'Sullivan         
Industries, Inc., approximated $350,000,000.  The initial         
public offering closed on February 2, 1994.                       

Tandy has recognized income of approximately $4,399,000,      
net of tax, during the year ended December 31, 1994               
pursuant to a Tax Sharing and Tax Benefit Reimbursement           
Agreement between Tandy and O'Sullivan under which Tandy          
receives payments from O'Sullivan approximating the               
federal tax benefit that O'Sullivan realizes from the             
increased tax basis of its assets resulting from the              
initial public offering.  The higher tax basis increases          
O'Sullivan's tax deductions and, accordingly, reduces             
income taxes payable by O'Sullivan.  These payments will          
be made over a 15-year time period and are contingent upon        
O'Sullivan's taxable income each year.  The Company is            
recognizing these payments as additional sale proceeds and        
gain in the year in which the payments become due and             
payable to the Company pursuant to the Tax Sharing and Tax        
Benefit Reimbursement Agreement.  The additional gain is          
recorded as a reduction of SG&A expense in the                    
accompanying Consolidated Statements of Income.                   

Lika.  On October 11, 1994, Tandy sold the assets used        
in its Lika(R) printed circuit board division to Viktron          
Limited Partnership, an Illinois limited partnership.  The        
proceeds from the sale and liquidation of assets                  
approximated $16,380,000 which included $7,754,000 in             
cash, proceeds from liquidation of retained assets of             
$5,594,000 and secured promissory notes for $3,032,000.           

In connection with the computer manufacturing sale, the           
Memtek Products sale and the Lika sale, the Company agreed to           
retain certain liabilities primarily relating to warranty               
obligations on products sold prior to the sale.  Management             
believes that accrued reserves, as reflected on its December            
31, 1994 balance sheet, are adequate to cover estimated                 
future warranty obligations for the products.                           

The losses from discontinued operations prior to the              
measurement date are outlined in the table below.                       

                                                            [Enlarge/Download Table]
                                                                                                                     
<CAPTIONS>                                                                                                           
                                                             Year Ended     Six Months Ended    Year Ended           
                                                            December 31,      December 31,       June 30,            
                                                            ------------      -----------      -----------           
(In thousands)                                                  1993              1992             1992              
---------------------------------------------------------------------------------------------------------------------
                                                                                                                     
Net sales and operating revenues                            $   368,137       $   500,861      $   940,591           
                                                            ===========       ===========      ===========           
Loss from discontinued operations:                                                                                   
Operating loss before income tax                            $   (59,549)      $   (72,665)     $   (30,503)          
Income tax benefit                                                1,930             8,790            3,637           
                                                            -----------       -----------      -----------           
Operating loss                                                  (57,619)      $   (63,875)     $   (26,866)          
                                                            -----------       ===========      ===========           

Estimated loss on disposal                                      (63,778)                                             
Estimated operating loss during                                                                                      
  phase out period                                               (7,000)                                             
Income tax benefit                                               16,600                                              
                                                            -----------                                              
Loss on disposal                                                (54,178)                                             
                                                            -----------                                              
Total loss from discontinued                                $  (111,797)                                             
                                                            ===========                                              
                                                                            
A loss from the sale of the Company's computer                    
manufacturing operations to AST, inclusive of losses from               
operations during the phase out period, was offset by gains             
from the sale of Memtek Products, O'Sullivan and Lika, also             
inclusive of results of operations during the phase out                 
period.                                                                 

Interest expense of $4,608,000 allocated through the              
measurement date of June 30, 1993 and $5,170,000 for the six            
months ended December 31, 1992, has been allocated to                   
discontinued operations based on the percentage of the net              
assets of discontinued operations to total net assets.                  

NOTE 22-RELATIONS WITH INTERTAN                                         
InterTAN, the former foreign retail operations of Tandy,          
was spun off to Tandy stockholders as a tax-free dividend in            
fiscal 1987.  Under the merchandise purchase terms of the               
original distribution agreement, InterTAN could purchase on             
payment terms products sold or secured by Tandy.  A&A                   
International ("A&A"), a subsidiary of Tandy, was the                   
exclusive purchasing agent for products originating in the              
Far East for InterTAN.                                                  

On July 16, 1993 InterTAN had an account payable to Tandy         
of approximately $17,000,000 of which $7,600,000 was in                 
default.  InterTAN's outstanding purchase orders for                    
merchandise placed under the distribution agreement with                
Tandy, but not yet shipped, totaled approximately                       
$44,000,000.  Because InterTAN had defaulted, on July 16                
Tandy terminated the merchandise purchase terms of the                  
distribution agreement and the license agreements.  Tandy               
offered InterTAN interim license agreements which expired               
July 22, 1993, unless extended.  The agreements were extended           
on July 23, 1993.                                                       

On July 30, 1993 Trans World Electronics, Inc. ("Trans            
World"), a subsidiary of Tandy, reached agreement with                  
InterTAN's banking syndicate to buy approximately $42,000,000           
of InterTAN's debt at a negotiated, discounted price.  The              
closing of this purchase occurred on August 5, 1993, at which           
time Tandy resumed limited shipments to InterTAN and granted            
a series of short-term, interim licenses pending the                    
execution of new license and merchandise agreements.  The               
debt purchased from the banks has been restructured into a              
seven-year note with interest of 8.64% due semiannually                 
beginning February 25, 1994 and semiannual principal payments           
beginning February 25, 1995 (the "Series A" note).  Trans               
World provided approximately $10,000,000 in working capital             
and trade credit to InterTAN.  Interest on the working                  
capital loan (the "Series B" note) of 8.11% is due                      
semiannually beginning February 25, 1994 with the principal             
due in full on August 25, 1996.  Trans World also has                   
received warrants with a five-year term exercisable for                 
approximately 1,450,000 shares of InterTAN common stock at an           
exercise price of $6.618 per share.  As required by an                  
agreement with Tandy, InterTAN has registered the warrants              
under the Securities Act of 1933.  At December 31, 1994,                
InterTAN's common stock price, as quoted in the Wall Street             
                                   -----------
Journal, was $8.125 per share.  The fair market value of                
-------                                                                 
these warrants at December 31, 1994 approximates $2,500,000.            

In addition to the bank debt purchased by Trans World and         
the working capital loan, InterTAN's obligations to Trans               
World included two additional notes for approximately                   
$23,665,000 (the "Series C" note) and $24,037,000 (the                  
"Series D" note) with interest rates of 7.5% and 8%,                    
respectively.  The notes represented the restructuring of               
InterTAN accounts payable for merchandise already shipped and           
required monthly interest payments.  All principal and                  
interest on the Series C note was paid in full by December              
31, 1993.  The Series D note was paid in full during the                
first quarter of 1994.  All of Tandy's debt from InterTAN is            
secured by a first priority lien on substantially all of                
InterTAN's assets in Canada and the U.K.                                

A new merchandise agreement was reached with InterTAN in            
October 1993 which requires future purchase orders to be                
backed by letters of credit posted by InterTAN.  New license            
agreements provide for a future royalty to Tandy.  InterTAN             
had obligations for purchase orders outstanding for                     
merchandise ordered by A&A for InterTAN but not yet shipped             
totaling approximately $24,705,000 at December 31, 1994.                

InterTAN has increased its bank revolving credit facility         
with its new banking syndicate to Canadian $60,000,000 (U.S.            
$42,774,000 equivalent at December 31, 1994).  In the case of           
InterTAN's default on the bank credit line, Tandy will, at              
the option of InterTAN's new banking syndicate, purchase                
InterTAN's inventory and related accounts receivable at 50%             
of their net book value, up to the amount of outstanding bank           
loans, but not to exceed Canadian $60,000,000.  In that                 
event, Tandy could foreclose on its first priority lien on              
InterTAN's assets in Canada and the U.K.  If Tandy fails to             
purchase the inventory and related accounts receivable of               
InterTAN from the banking syndicate, the syndicate upon                 
notice to Tandy and expiration of time, can foreclose upon              
InterTAN's assets in Canada and the U.K. ahead of Tandy.  The           
inventory repurchase agreement between InterTAN's banking               
syndicate and Tandy has been amended and restated to reflect            
the foregoing.                                                          

As of December 31, 1994 InterTAN owed Tandy an aggregate          
of $39,965,000, net of discount.  The current portion of the            
obligation approximates $8,707,000 and the non-current                  
portion approximates $31,258,000.  In 1994 Tandy recognized             
$3,855,000 in accretion of discount on the note receivable              
from InterTAN which resulted from the purchase of the bank              
debt at a discounted price.  Accretion of this discount is              
based on the effective interest rate method.  Tandy                     
recognized sales to and commission income from InterTAN of              
approximately $19,764,000 and interest income of $8,280,000             
during fiscal 1994.  During the year ended December 31, 1993,           
Tandy recognized approximately $93,315,000 of sales to                  
InterTAN and interest income of $3,085,000.  Tandy's sales to           
InterTAN totaled $90,130,000 during the six months ended                
December 31, 1992 and $171,126,000 during fiscal 1992.                  

A&A will continue as the exclusive purchasing agent for           
InterTAN in the Far East on a commission basis.  Commencing             
in March 1994, only the purchasing agent commission and sales           
by Tandy manufacturing plants to InterTAN were recorded as              
sales and operating revenues.  InterTAN purchases from third            
parties through A&A are no longer recorded as sales,                    
reflecting the arrangement under the new merchandise                    
agreement.  Accordingly, sales by Tandy to InterTAN in 1994             
are considerably lower than in prior years; however, the                
earned income relating thereto was not materially different.            

Through February 1995 InterTAN has met all of its payment         
obligations to Tandy.  In addition, its operations have                 
improved in fiscal 1995 as evidenced by its published net               
income for the six months ended December 31, 1994                       
approximating $17,704,000 or $1.11 per fully diluted share as           
opposed to net income of $4,567,000 or $0.49 per fully                  
diluted share for the same period in the prior year.  As a              
result, nothing has come to the attention of management which           
would indicate that InterTAN would not be able to continue to           
meet its payment obligations pursuant to the debt agreements            
with Tandy.                                                             

Canadian tax authorities are reviewing InterTAN's Canadian        
subsidiary's 1987-89 tax returns.  The Company cannot                   
determine whether the ultimate resolution of that review will           
have an effect on InterTAN's ability to meet its obligations            
to Tandy, but at the present, the Company believes that the             
ultimate resolution of this review will not impair InterTAN's           
ability to meet its obligations to Tandy.                               

NOTE 23-QUARTERLY DATA (UNAUDITED)                                      
As the Company's operations are predominantly retail              
oriented, its business is subject to seasonal fluctuations              
with the December 31 quarter being the most significant in              
terms of sales and profits because of the Christmas selling             
season.                                                                 

During the quarter ended December 31, 1994, the Company           
recognized a restructuring charge of $89,071,000 for business           
restructuring relating to the closing of certain retail                 
stores.  The Company also recognized a gain of $91,437,000              
relating to the sale of Computer City and Incredible Universe           
private label credit card portfolios and the transfer of the            
Company's legal obligations pursuant to extended service                
contracts.  See Notes 3 and 4 for further information.                  

During the quarter ended December 31, 1993, the Company           
recognized a gain, net of tax, from discontinued operations             
of approximately $15,822,000.  This gain partially offset the           
after-tax charge of $70,000,000 previously taken in the June            
1993 quarter and reduced the loss on disposal of discontinued           
operations to approximately $54,178,000.  The gain resulted             
from the better than anticipated sales price received for               
O'Sullivan partially offset by additional foreign currency              
translation losses and below plan operating results of the              
divested companies during the divestment period, net of                 
related income tax adjustments.  See Note 21 for further                
information on discontinued operations.                                 

During the quarter ended March 31, 1993, the Company              
adopted FAS 109 which changed the Company's method of                   
accounting for income taxes from the deferred method to an              
asset and liability approach.  The adjustments to the January           
1, 1993 balance sheet to adopt FAS 109 totaled $13,014,000.             
This amount is reflected in 1993 net income as the cumulative           
effect of a change in accounting principle.  See Note 12 for            
further information on Change in Accounting Principle -                 
Provision for Income Taxes.                                             

As discussed in detail in Note 2, income per share amounts        
and the weighted average of common and common equivalent                
shares outstanding for all quarters commencing with the                 
quarter ending March 31, 1992 (quarter of issuance) through             
September 30, 1994 have been retroactively restated to                  
reflect that the PERCS will convert into 11,816,000 shares of           
common stock.                                                           

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QUARTERLY DATA (Unaudited)                                                                                            
<CAPTIONS>                                                                                                            
                                                                               Three Months Ended                     
                                                        ------------------------------------------------------------- 
(In thousands)                                            March 31         June 30          Sept. 30         Dec. 31  
--------------------------------------------------------------------------------------------------------------------- 
                                                                                                                      
Year ended December 31, 1994:                                                                                         
Net sales and operating revenues                        $   992,135      $ 1,009,277      $ 1,119,155      $ 1,823,112
Gross profit                                                407,354          407,174          447,656          663,880
Net income                                                   41,795           34,415           46,191          101,934

Net income available per average                                                                                      
  common and common equivalent share                    $      0.53      $      0.44      $      0.59      $      1.37

Dividends declared per common share                     $      0.15      $      0.15      $      0.15      $      0.18

Average common and common                                                                                             
  equivalent shares outstanding                              75,802           75,417           75,023           73,262

Year ended December 31, 1993:                                                                                         
Net sales and operating revenues                        $   864,712      $   843,111      $   939,897      $ 1,454,831
Gross profit                                                389,720          368,866          400,535          560,823
Income from continuing operations                            40,673           31,741           42,559           80,659
Income (loss) from discontinued                                                                                       
  operations, net of tax                                    (18,542)        (109,077)              --           15,822
Cumulative effect on prior years of                                                                                   
  change in accounting principle                             13,014               --               --               --
Net income (loss)                                            35,145          (77,336)          42,559           96,481

Net income (loss) available per average                                                                               
  common and common equivalent share:                                                                                 
Income from continuing operations                       $      0.52      $      0.40      $      0.54      $      1.04
Income (loss) from discontinued operations                    (0.25)           (1.45)              --             0.21
Cumulative effect on prior years of                                                                                   
  change in accounting principle                               0.17               --               --               --
Net income (loss) available per average                                                                               
  common and common equivalent share                           0.44            (1.05)            0.54             1.25

Dividends declared per common share                     $      0.15      $      0.15      $      0.15      $      0.15

Average common and common                                                                                             
  equivalent shares outstanding                              75,081           75,387           75,666           76,033

                                                                            
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TANDY CORPORATION           
INDEX TO EXHIBITS           

Exhibit                                            Sequential           
Number   Description                                Page No.            

2a       Agreement for Purchase and Sale of Assets                      
dated as of June 30,   1993 between AST               
Research, Inc., as Purchaser and Tandy                
Corporation, TE Electronics Inc., and GRiD            
Systems Corporation, as Sellers (without              
exhibits) (filed as Exhibit 2 to Tandy's              
July 13, 1993 Form 8-K filed on July 27,              
1993, Accession No. 0000096289-93-000004              
and incorporated herein by reference).                

2b       Amended and Restated Stock Exchange                            
Agreement dated February 1, 1994 by and               
among O'Sullivan Industries Holdings, Inc.,           
and TE Electronics Inc. (filed as Exhibit             
2b to Tandy's Form 10-K filed on March 30,            
1994, Accession No. 0000096289-94-000029              
and incorporated herein by reference).                

2c       U.S. Purchase Agreement dated January 26,                      
1994 by and among O'Sullivan Industries               
Holdings, Inc., TE Electronics Inc. and               
the U.S. Underwriters which included Merrill          
Lynch & Co., Wheat First Butcher & Singer,            
The Chicago Dearborn Company and Rauscher             
Pierce Refsnes, Inc. (filed as Exhibit 2c             
to Tandy's Form 10-K filed on March 30,               
1994, Accession No. 0000096289-94-000029              
and incorporated herein by reference).                

2d       International Purchase Agreement dated                         
January 26, 1994 by and among O'Sullivan              
Industries Holdings, Inc., TE Electronics             
Inc. and the U.S. Underwriters which included         
Merrill Lynch International Limited and UBS           
Limited (filed as Exhibit 2d to Tandy's               
Form 10-K filed on March 30, 1994, Accession          
No. 0000096289-94-000029 and incorporated             
herein by reference).                                 

2e       Acquisition Agreement dated January 18, 1995                   
between Hurley State Bank, as purchaser and           
Tandy Credit Corporation as seller (without           
exhibits) (filed as Exhibit (c) to Tandy's            
January 18, 1995 Form 8-K filed on February           
2, 1995, Accession No. 0000096289-95-000008           
and incorporated herein by reference).                

3a(i)    Restated Certificate of Incorporation of                       
Tandy dated December 10, 1982 (filed as               
Exhibit 4A to Tandy's 1993 Form S-8 for               
the Tandy Corporation Incentive Stock Plan,           
Reg. No. 33-51603, filed on November 12,              
1993, Accession No. 0000096289-93-000017              
and incorporated herein by reference).                

3a(ii)   Certificate of Amendment of Certificate of                     
Incorporation of Tandy Corporation dated              
November 13, 1986 (filed as Exhibit 4A to             
Tandy's 1993 Form S-8 for the Tandy                   
Corporation Incentive Stock Plan, Reg. No.            
33-51603, filed on November 12, 1993,                 
Accession No. 0000096289-93-000017 and                
incorporated herein by reference).                    

3a(iii)  Certificate of Amendment of Certificate                        
of Incorporation, amending and restating the          
Certificate of Designation, Preferences and           
Rights of Series A Junior Participating               
Preferred Stock dated June 22, 1990 (filed            
as Exhibit 4A to Tandy's 1993 Form S-8 for            
the Tandy Corporation Incentive Stock Plan,           
Reg. No. 33-51603, filed on November 12,              
1993, Accession No. 0000096289-93-000017              
and incorporated herein by reference).                

3a(iv)   Certificate of Designations of Series B                        
TESOP Convertible Preferred dated June 29,            
1990 (filed as Exhibit 4A to Tandy's 1993             
Form S-8 for the Tandy Corporation Incentive          
Stock Plan, Reg. No. 33-51603, filed on               
November 12, 1993, Accession No. 0000096289-          
93-000017 and incorporated herein by reference).      

3a(v)    Certificate of Designation, Series C                           
Conversion Preferred Stock dated February 13,         
1992 (filed as Exhibit 4A to Tandy's 1993             
Form S-8 for the Tandy Corporation Incentive          
Stock Plan, Reg. No. 33-51603, filed on               
November 12, 1993, Accession No. 0000096289-          
93-000017 and incorporated herein by reference).      

3b       Tandy Corporation Bylaws, restated as of                       
August 4, 1993 (filed as Exhibit 4B to Tandy's        
Form S-8 for the Tandy Corporation Incentive          
Stock Plan, Reg. No. 33-51603, filed on               
November 12, 1993, Accession No. 0000096289-          
93-000017 and incorporated herein by reference).      

4a       Amended and restated Rights Agreement with                     
the First National Bank of Boston dated               
June 22, 1990 for Preferred Share Purchase            
Rights (filed as Exhibit 4b to Tandy's                
Form 10-K filed on March 30, 1994, Accession          
No. 0000096289-94-000029 and incorporated             
herein by reference).                                 

4b       Revolving Credit Agreement between Tandy                       
Corporation and Texas Commerce Bank,                  
individually and as Agent for sixteen other           
banks, dated as of May 27, 1994 (without              
exhibits) (filed as Exhibit 4c to Tandy's             
Form 10Q filed on August 15, 1994, Accession          
No. 0000096289-94-000039 and incorporated             
herein by reference).                                 

4c       Continuing Guaranty dated as of June 18,                       
1991 by Tandy Corporation in favor of                 
holders of indebtedness issued by Tandy               
Credit Corporation that is or may be                  
publicly traded and is rated by at least              
one nationally recognized rating agency               
(filed as Exhibit 4e to Tandy's Form 10-K             
filed on March 30, 1994, Accession No.                
0000096289-94-000029 and incorporated                 
herein by reference).                                 

10a*     Salary Continuation Plan for Executive                         
Employees of Tandy Corporation and                    
Subsidiaries including amendment dated                
June 14, 1984 with respect to participation           
by certain executive employees, as restated           
October 4, 1990 (filed as Exhibit 10a to              
Tandy's Form 10-K filed on March 30, 1994,            
Accession No. 0000096289-94-000029 and                
incorporated herein by reference).                    

10b*     Form of Executive Pay Plan Letters.               59           

10c*     Post Retirement Death Benefit Plan for                         
Selected Executive Employees of Tandy                 
Corporation and Subsidiaries as restated              
June 10, 1991 (filed as Exhibit 10c to                
Tandy's Form 10-K filed on March 30, 1994,            
Accession No. 0000096289-94-000029 and                
incorporated herein by reference).                    

10d*     Tandy Corporation Officers Deferred                            
Compensation Plan as restated July 10,                
1992 (filed as Exhibit 10d to Tandy's                 
Form 10-K filed on March 30, 1994, Accession          
No. 0000096289-94-000029 and incorporated             
herein by reference).                                 

10e*     Special Compensation Plan No. 1 for Tandy                      
Corporation Executive Officers, adopted in            
1993 (filed as Exhibit 10e to Tandy's Form            
10-K filed on March 30, 1994, Accession No.           
0000096289-94-000029 and incorporated herein          
by reference).                                        

10f*     Special Compensation Plan No. 2 for Tandy                      
Corporation Executive Officers, adopted in            
1993 (filed as Exhibit 10f to Tandy's Form            
10-K filed on March 30, 1994, Accession No.           
0000096289-94-000029 and incorporated herein          
by reference).                                        

10g*     Special Compensation Plan for Directors of                     
Tandy Corporation dated November 13, 1986             
(filed as Exhibit 10g to Tandy's Form 10-K            
filed on March 30, 1994, Accession No.                
0000096289-94-000029 and incorporated herein          
by reference).                                        

10h*     Director Fee Resolution (filed as Exhibit                      
10h to Tandy's Form 10-K filed on March 30,           
1994, Accession No. 0000096289-94-000029 and          
incorporated herein by reference).                    

10i*     Tandy Corporation 1985 Stock Option Plan as                    
restated effective August 1990 (filed as              
Exhibit 10i to Tandy's Form 10-K filed on             
March 30, 1994, Accession No. 0000096289-94-          
000029 and incorporated herein by reference).         

10j*     Tandy Corporation 1993 Incentive Stock Plan                    
as restated October 14, 1993 (filed as                
Exhibit 4B to Tandy's Form S-8 for Tandy              
Corporation Incentive Stock Plan, Reg. No.            
33-51603, filed on November 12, 1993,                 
Accession No. 0000096289-93-000017 and                
incorporated herein by reference).                    

10k*     Tandy Corporation Officers Life Insurance                      
Plan as amended and restated effective                
August 22, 1990 (filed as Exhibit 10k to              
Tandy's Form 10-K filed on March 30, 1994,            
Accession No. 0000096289-94-000029 and                
incorporated herein by reference).                    

10l*     Restated Trust Agreement Tandy Employees                       
Supplemental Stock Program through Amendment          
No. III dated March 29, 1993 (filed as                
Exhibit 10H to Tandy's Form 10-K/A-4 filed            
on September 3, 1993, Accession No.                   
0000096289-93-000011 and incorporated                 
herein by reference).                                 

10m*     Forms of Termination Protection Agreements                     
for (i) Corporate Executives, (ii) Division           
Executives, and (iii) Subsidiary Executives           
(filed as Exhibit 10m to Tandy's Form 10-K            
filed on March 30, 1994, Accession No.                
0000096289-94-000029 and incorporated                 
herein by reference).                                 

10n*     Tandy Corporation Termination Protection                       
Plans for Executive Employees of Tandy                
Corporation and its Subsidiaries (i) the              
Level I and (ii) Level II Plans (filed as             
Exhibit 10n to Tandy's Form 10-K filed on             
March 30, 1994, Accession No. 0000096289-94-          
000029 and incorporated herein by reference).         

10o*     Forms of Bonus Guarantee Letter Agreements                     
with certain Executive Employees of Tandy             
Corporation and its Subsidiaries (i) Formula,         
(ii) Discretionary, and (iii) Pay Plan (filed         
as Exhibit 10o to Tandy's Form 10-K filed             
on March 30, 1994, Accession No. 0000096289-          
94-000029 and incorporated herein by reference).      

10p*     Form of Indemnity Agreement with Directors,                    
Corporate Officers and two Division Officers          
of Tandy Corporation (filed as Exhibit 10p            
to Tandy's Form 10-K filed on March 30, 1994,         
Accession No. 0000096289-94-000029 and                
incorporated herein by reference).                    

11       Statement of Computation of Earnings per Share    67           

12       Statement of Computation of Ratios of Earnings                 
to Fixed Charges                                  69  

21       Subsidiaries                                      70           

23       Consent of Independent Accountants                71           

27       Financial Data Schedule                                        

_______________________                                                 

* Each of these exhibits is a "management contract or                   
compensatory plan, contract, or arrangement".                           

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                                       EXHIBIT 10b
January 1, 1995                                                         

TO:                                                                     

FROM:      Richard Ramsey                                               

SUBJECT:   Compensation Plan, Fiscal Year 1995                          

Your compensation plan for fiscal year 1995 is outlined                 
below.                                                                  

I.   FY 1995 Base Salary                                                
-------                                                       

Your Base Salary for FY95 shall be $.                         

II.  Your bonus for FY95 shall be determined by multiplying             
the percent determined in the following TARGET INCENTIVE      
GOALS times the FACTORS set forth below.                      

The bonus amounts payable are subject to limitations set      
forth in Paragraph III and IV.                                

TARGET INCENTIVE GOALS:                                       

1.  INCOME                                                    
Each percentage point of positive change that the Tandy       
Corporation and subsidiaries income from operations           
(before income taxes) increases from the prior year.          

2.  Each percentage point of positive change that the         
Tandy Services net income (Pre-Admin) increases from the      
prior year.  Tandy Services, for this calculation, will       
include TE-US, TE-Asia, Tandy Services Consolidation          
(P&L RS3-8200), Tandy Transportation, Consumer Mail and       
Express Order Marketing (P&L RS2-2200).                       

Your factors to be used for each of the calculations          
above are as follows:                                         

1.  Tandy Corporation income increase: $                  

2.  Tandy Services Income increase: $                     

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Page 2                                                                  
January 1, 1995                                                         
Compensation Plan, FY95                                                 

III. Minimum Bonus                                                      

Minimum Threshold Increase Percent for Each Target            
--------------------------------------------------            
Incentive Goal                                                
--------------                                                

                  Minimum Increase %
                  ------------------
1. Tandy Corporation Income         3                     

2. Tandy Services Income            75                    

Bonus amounts earned from each of the factors which           
exceed the minimum Increase above will be accumulated.        
No bonus will be paid unless the accumulated bonus            
exceeds 9% of your base salary.                               

Bonus will only be paid on each goal which exceeds the        
----                                    
Minimum Increase % set forth above.                           

IV.  Maximum Bonus:                                                     

The bonus paid will be limited to an amount not to            
exceed $.                                                     

V.   This compensation plan is not an employment contract,              
but a method of calculating your total earnings.  You         
forfeit your rights to receive a bonus if you resign          
before the end of the current fiscal year.  If you are        
terminated by the Company, you forfeit your rights to         
receive a bonus except at the sole discretion of the          
Company and in such amount as the Company might decide.       
If you retire at age 55 or over, provided the Company         
has given its consent to your early retirement, or die        
before the end of the then current fiscal year, your          
bonus for the current year-to-date will be calculated to      
the nearest end of the month preceding or succeeding          
such event, using the formula above and adjusting for         
the partial year.  The amount will be paid to you or the      
legal representative of your estate.                          

VI.  If at any time during your continued employment, your              
responsibility, duties or title changes, this plan is         
subject to revision or termination by the Company at the      
time of the foregoing change.                                 

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January 1, 1995                                                         

TO:                                                                     

FROM:      Richard Ramsey                                               

SUBJECT:   Compensation Plan, Fiscal Year 1995                          

Your compensation plan for fiscal year 1995 is outlined                 
below.                                                                  

I.   FY 1995 Base Salary                                                
-------                                                       

Your Base Salary for FY95 shall be $.                         

II.  Your bonus for FY95 shall be determined by multiplying             
the percent determined in the following TARGET INCENTIVE      
GOALS times the FACTORS set forth below.                      

The bonus amounts payable are subject to limitations set      
forth in Paragraph III and IV.                                

TARGET INCENTIVE GOALS:                                       

TANDY CORPORATION                                             
-----------------                                             

1. INCOME                                                     
Each percentage point of positive change that the Tandy       
Corporation and subsidiaries income from operations           
(before income taxes) increases from the prior year.          

2. EARNINGS PER SHARE                                         
Each percentage point of positive change that the Tandy       
Corporation earnings per share increases from the prior       
year.                                                         

3. STOCK PRICE                                                
a. Each percentage point of positive change that the          
Tandy Corporation stock price increases, based on the         
average daily closing price for 1994 and 1995.                

b. If Tandy's average daily closing stock price               
outperforms the "Peer Group's" average daily closing          
stock price, you will receive an additional bonus of $.       

Percentages shall be calculated to two decimal points.    

Your factors to be used for each of the calculations      
above are as follows:                                     

1. Income increase: $                                     

2. Earnings per share increase: $                         

3. Stock price increase: $                                

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Page 2                                                                  
January 1, 1995                                                         
Compensation Plan, FY95                                                 

REAL ESTATE                                                   
-----------                                                   

Additional bonus will be paid based on targets set forth      
in Attachment 1.                                              

III. Minimum Bonus                                                      

Minimum Threshold Increase Percent for Each Target            
--------------------------------------------------            
Incentive Goal                                                
--------------                                                

             Minimum
             -------
1. Income                     3% Increase                 

2. Earnings per share         3% Increase                 

3. Stock price                                            
a. Tandy Stock Increase    5% Increase              
b. Peer Group                  N/A                  

4. Real Estate -                                          
Net Store Openings           75 Stores Opened       
Closed Store Buyouts        120 Store Buyouts       

Bonus amounts earned from each of the factors which           
exceed the minimum Increase above will be accumulated.      
No bonus will be paid unless the accumulated bonus          
exceeds 12% of your base salary.                            

Bonus will only be paid on each goal which exceeds the        
----                                    
Minimum Increase % set forth above.                           

IV.  Maximum Bonus:                                                     

The bonus paid will be limited to an amount not to            
exceed $.                                                     

V.   This compensation plan is not an employment contract,              
but a method of calculating your total earnings.  You         
forfeit your rights to receive a bonus if you resign          
before the end of the current fiscal year.  If you are        
terminated by the Company, you forfeit your rights to         
receive a bonus except at the sole discretion of the          
Company and in such amount as the Company might decide.       
If you retire at age 55 or over, provided the Company         
has given its consent to your early retirement, or die        
before the end of the then current fiscal year, your          
bonus for the current year-to-date will be calculated to      
the nearest end of the month preceding or succeeding          
such event, using the formula above and adjusting for         
the partial year.  The amount will be paid to you or the      
legal representative of your estate.                          

VI.  If at any time during your continued employment, your              
responsibility, duties or title changes, this plan is         
subject to revision or termination by the Company at the      
time of the foregoing change.                                 

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December 31, 1994                                                       

TO:                                                                     

FROM:      Richard Ramsey                                               

SUBJECT:   Compensation Plan, Fiscal Year 1995                          

Your compensation plan for fiscal year 1995, as approved      
by the Organization and Compensation Committee of the         
Board of Directors, is outlined below.                        

I.   FY 1995 Base Salary                                                
-------                                                       

Your Base Salary for FY95 shall be $                          

II.  Your bonus for FY95 shall be determined by multiplying             
the percent determined in the following TARGET INCENTIVE      
GOALS times the FACTORS set forth below.                      

The bonus amounts payable are subject to limitations set      
forth in Paragraph III and IV.                                

TARGET INCENTIVE GOALS:                                       

1. INCOME                                                     
Each percentage point of positive change that the Tandy       
Corporation and subsidiaries income from operations           
(before income taxes) increases from the prior year.          

2. EARNINGS PER SHARE                                         
Each percentage point of positive change that the Tandy       
Corporation earnings per share increases from the prior       
year.                                                         

3. STOCK PRICE                                                
a. Each percentage point of positive change that the          
Tandy Corporation stock price increases, based on the         
average daily closing price for 1994 and 1995.                

b. If Tandy's average daily closing stock price               
outperforms the "Peer Group's" average daily closing          
stock price, you will receive an additional bonus of $.       

Percentages shall be calculated to two decimal points.    

Your factors to be used for each of the calculations      
above are as follows:                                     

1. Income increase: $                                     

2. Earnings per share increase: $                         

3. Stock price increase: $                                

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Page 2                                                                  
December 31, 1994                                                       
Compensation Plan, FY95                                                 

III. Minimum Bonus                                                      

Minimum Threshold Increase Percent for Each Target            
--------------------------------------------------            
Incentive Goal                                                
--------------                                                

                        Minimum Increase %
                        ------------------
1. Income                              3                  

2. Earnings per share                  3                  

3. Stock price                                            
a. Tandy Stock Increase             5               
b. Peer Group                       N/A             

Bonus amounts earned from each of the factors which           
exceed the minimum Increase above will be accumulated.        
No bonus will be paid unless the accumulated bonus            
exceeds 12% of your base salary.                              

Bonus will only be paid on each goal which exceeds the        
----                                    
Minimum Increase % set forth above.                           

IV.  Maximum Bonus:                                                     

The bonus paid will be limited to an amount not to            
exceed $.                                                     

V.   This compensation plan is not an employment contract,              
but a method of calculating your  total earnings.  You        
forfeit your rights to receive a bonus if you resign          
before the end of the current fiscal year.  If you are        
terminated by the Company, you forfeit your rights to         
receive a bonus except at the sole discretion of the          
Company and in such amount as the Company might decide.       
If you retire at age 55 or over, provided the Company         
has given its consent to your early retirement, or die        
before the end of the then current fiscal year, your          
bonus for the current year-to-date will be calculated to      
the nearest end of the month preceding or succeeding          
such event, using the formula above and adjusting for         
the partial year.  The amount will be paid to you or the      
legal representative of your estate.                          

VI.  If at any time during your continued employment, your              
responsibility, duties or title changes, this plan is         
subject to revision or termination by the Company at the      
time of the foregoing change.                                 

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January 1, 1995                                                         

TO:                                                                     

FROM:      Richard Ramsey                                               

SUBJECT:   Compensation Plan, Fiscal Year 1995                          

Your compensation plan for fiscal year 1995 is outlined                 
below.                                                                  

I.   FY 1995 Base Salary                                                
-------                                                       

Your Base Salary for FY95 shall be $                          

II.  Your bonus for FY95 shall be determined by multiplying             
the percent determined in the following TARGET INCENTIVE      
GOALS times the FACTORS set forth below.                      

The bonus amounts payable are subject to limitations set      
forth in Paragraph III and IV.                                

TARGET INCENTIVE GOALS:                                       

1. INCOME                                                     
Each percentage point of positive change that the Radio       
Shack Division net income (before income taxes)               
increases from the prior year.                                

2. SALES                                                      
Each percentage point of positive change that the Radio       
Shack Division sales increase from the prior year.            

3. GROSS PROFIT                                               
Each percentage point of positive change that the Radio       
Shack Division gross profit dollars increase from the         
prior year.                                                   

Radio Shack results will be adjusted to reflect certain       
Tandy Support Operations for 1994 and 1995.                   

Percentages shall be calculated to two decimal points.    

Your factors to be used for each of the calculations      
above are as follows:                                     

1. Radio Shack income increase: $                         

2. Radio Shack sales increase: $                          

3. Radio Shack gross profit dollars increase: $           

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Page 2                                                                  
January 1, 1995                                                         
Compensation Plan, FY95                                                 

III. Minimum Bonus                                                      

Minimum Threshold Increase Percent for Each Target            
--------------------------------------------------            
Incentive Goal                                                
--------------                                                

                        Minimum Increase %
                        ------------------
1. Income                              2                  

2. Sales                               1                  

3. Gross Profit                        1                  

Bonus amounts earned from each of the factors which           
exceed the minimum Increase above will be accumulated.        
No bonus will be paid unless the accumulated bonus            
exceeds 12% of your base salary.                              

Bonus will only be paid on each goal which exceeds the        
----                                    
Minimum Increase % set forth above.                           

IV.  Maximum Bonus:                                                     

The bonus paid will be limited to an amount not to            
exceed $.                                                     

V.   This compensation plan is not an employment contract,              
but a method of calculating your total earnings.  You         
forfeit your rights to receive a bonus if you resign          
before the end of the current fiscal year.  If you are        
terminated by the Company, you forfeit your rights to         
receive a bonus except at the sole discretion of the          
Company and in such amount as the Company might decide.       
If you retire at age 55 or over, provided the Company         
has given its consent to your early retirement, or die        
before the end of the then current fiscal year, your          
bonus for the current year-to-date will be calculated to      
the nearest end of the month preceding or succeeding          
such event, using the formula above and adjusting for         
the partial year.  The amount will be paid to you or the      
legal representative of your estate.                          

VI.  If at any time during your continued employment, your              
responsibility, duties or title changes, this plan is         
subject to revision or termination by the Company at the      
time of the foregoing change.                                 

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                                                  TANDY CORPORATION                                              EXHIBIT 11 
                                   STATEMENT OF COMPUTATION OF EARNINGS PER SHARE                                           

<CAPTIONS>                                                                                                                  
                                                                       Year Ended            Six Months Ended   Year Ended  
                                                                       December 31,             December 31,      June 30,  
                                                                ---------------------------    --------------   ----------- 
(In thousands, except per share amounts)                           1994            1993            1992            1992     
--------------------------------------------------------------------------------------------------------------------------- 
                                                                                                                            
PRIMARY EARNINGS PER SHARE                                                                                                  

Reconciliation of net income per statements of income to                                                                    
  amounts used in computation of primary earnings per share:                                                                

Net income, as reported                                         $   224,335     $    96,849     $     3,806     $   183,847 
Less dividends on preferred stock:                                                                                          
  Series B, net of tax in 1992 (a)                                   (6,777)         (7,136)         (2,419)         (4,911)
                                                                -----------     -----------     -----------     ----------- 
Net income available to common                                                                                              
  shareholders for primary earnings per share                   $   217,558     $    89,713     $     1,387     $   178,936 
                                                                ===========     ===========     ===========     =========== 

Weighted average number of common shares outstanding                 62,769          63,582          63,072          74,631 
Weighted average number of $2.14 depositary shares,                                                                         
  representing Series C preferred stock, treated as                                                                         
  common stock due to mandatory conversion (b)                       11,816          11,816          11,816           4,100 
Weighted average number of common shares issuable                                                                           
  under stock option plans, net of assumed treasury stock                                                                   
  repurchases at average market prices                                  289             145              30              57 
                                                                -----------     -----------     -----------     ----------- 
Weighted average number of common and common                                                                                
  equivalent shares outstanding                                      74,874          75,543          74,918          78,788 
                                                                ===========     ===========     ===========     =========== 
Net income available per average                                                                                            
  common and common equivalent share                            $      2.91     $      1.19     $      0.02     $      2.27 
                                                                ===========     ===========     ===========     =========== 

FULLY DILUTED EARNINGS PER SHARE (c)                                                                                        

Reconciliation of net income per statements of income to                                                                    
  amounts used in computation of fully diluted earnings per share:                                                          
  Net income available to common stockholders                   $   217,558     $    89,713     $     1,387     $   178,936 
  Adjustments for assumed conversion of Series B preferred                                                                  
    stock to common stock as of the beginning of the period:                                                                
  Plus dividends on Series B preferred stock, net of tax (a)          6,777             (d)             (d)           4,911 
  Less additional contribution that would have been required for                                                            
    the TESOP if Series B preferred stock had been converted         (3,874)            (d)             (d)          (3,612)
                                                                -----------     -----------     -----------     ----------- 
Net income available per common and                                                                                         
  common equivalent share, as adjusted                          $   220,461     $    89,713     $     1,387     $   180,235 
                                                                ===========     ===========     ===========     =========== 

Reconciliation of weighted average number of shares outstanding                                                             
  to amount used in computation of fully diluted earnings per share:                                                        
  Weighted average number of shares outstanding                      74,874          75,543          74,918          78,788 
  Adjustments to reflect assumed exercise of stock                                                                          
    options as of the beginning of the period                            95             223              35              35 
    Adjustment to reflect assumed conversion of                                                                             
      Series B preferred stock to common stock as                                                                           
      of the beginning of the period                                  1,990             (d)             (d)           2,166 
                                                                -----------     -----------     -----------     ----------- 
    Weighted average number of common and common                                                                            
      equivalent shares outstanding, as adjusted                     76,959          75,766          74,953          80,989 
                                                                ===========     ===========     ===========     =========== 
Fully diluted net income available per average                                                                              
   common and common equivalent share                           $      2.86     $      1.18     $      0.02     $      2.23 
                                                                ===========     ===========     ===========     =========== 

<FN>                                                                                                                        
(a) Series B dividends for the years ended December 31, 1994 and 1993 are not net of income tax benefits associated with    
    unallocated shares in the TESOP in accordance with EITF Issue 92-3.                                                     
(b) Effect of mandatory conversion of Series C preferred stock for the year ended December 31, 1993, the six months ended   
    December 31, 1992 and the year ended June 30, 1992 have been restated to reflect the actual number of shares of common  
    stock into which the Series C PERCS will be converted on March 10, 1995.                                                
(c) This calculation is submitted in accordance with Regulation S-K, Item 601(b)(11) although not required by footnote 2    
    to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%.                                   
(d) For the year ended December 31, 1993 and the six months ended December 31, 1992 these items are antidilutive and thus   
    are omitted from the calculation.                                                                                       

                                                                            
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                                                  TANDY CORPORATION                                              EXHIBIT 12   
                            STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES                                    
                          AND RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS (1)                                  
<CAPTIONS>                                                                                                                    
                                                       Year Ended        Six Months Ended                                     
                                                      December 31,         December 31,          Year Ended June 30,          
                                                 -----------------------    ---------   --------------------------------------
(In thousands, except per share amounts)           1994          1993          1992        1992         1991         1990     
------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              
Ratio of Earnings to Fixed Charges:                                                                                           

Income from continuing operations                 $ 224,335    $ 195,632    $  67,681    $ 210,713    $ 219,935    $ 277,122  
Plus provision for income taxes                     135,205      115,523       35,236      119,785      123,342      167,926  
                                                  ---------    ---------    ---------    ---------    ---------    ---------  
Income before income taxes                          359,540      311,155      102,917      330,498      343,277      445,048  
                                                  ---------    ---------    ---------    ---------    ---------    ---------  
Fixed charges:                                                                                                                

Interest expense and amortization                                                                                             
  of debt discount                                   30,047       39,707       20,532       43,154       70,313       58,592  
Amortization of issuance expense                        261          409          591          563          400          325  
Appropriate portion (33 1/3%) of rentals             70,800       67,467       35,109       68,224       63,980       59,123  
                                                  ---------    ---------    ---------    ---------    ---------    ---------  
  Total fixed charges                               101,108      107,583       56,232      111,941      134,693      118,040  
                                                  ---------    ---------    ---------    ---------    ---------    ---------  

Earnings before income taxes                                                                                                  
   and fixed charges                              $ 460,648    $ 418,738    $ 159,149    $ 442,439    $ 477,970    $ 563,088  
                                                  =========    =========    =========    =========    =========    =========  

Ratio of earnings to fixed charges                     4.56         3.89         2.83         3.95         3.55         4.77  
                                                  =========    =========    =========    =========    =========    =========  

Ratio of Earnings to Fixed Charges                                                                                            
  and Preferred Dividends:                                                                                                    

Total fixed charges, as above                       101,108      107,583       56,232      111,941      134,693      118,040  
Preferred dividends                                  38,877       36,738       18,469       20,014        6,875           --  
                                                  ---------    ---------    ---------    ---------    ---------    ---------  
Total fixed charges and preferred                 $ 139,985    $ 144,321    $  74,701    $ 131,955    $ 141,568    $ 118,040  
                                                  =========    =========    =========    =========    =========    =========  

Earnings before income taxes, fixed charges                                                                                   
  and preferred dividends                         $ 460,648    $ 418,738    $ 159,149    $ 442,439    $ 477,970    $ 563,088  
                                                  =========    =========    =========    =========    =========    =========  
Ratio of earnings to fixed charges                                                                                            
  and preferred dividends                              3.29         2.90         2.13         3.35         3.38         4.77  
                                                  =========    =========    =========    =========    =========    =========  

<FN>                                                                                                                          
(1) The computation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Fixed Charges and Preferred                
    Dividends excludes results of operations from discontinued operations and fixed charges relating to these same            
    operations.                                                                                                               

                                                                            
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TANDY CORPORATION           

EXHIBIT 21          

SUBSIDIARIES            

The largest subsidiaries of the Company are:                            

                            State of Incorporation
                            ----------------------
Tandy Credit Corporation                     Delaware                   

Technology Properties, Inc.                  Delaware                   

Trans World Electronics, Inc.                 Texas                     

All of the subsidiaries of Tandy Corporation are included in            
the Company's consolidated financial statements.  All other             
subsidiaries, considered in the aggregate as a single                   
subsidiary, would not constitute a significant subsidiary.              

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TANDY CORPORATION           

EXHIBIT 23          

CONSENT OF INDEPENDENT ACCOUNTANTS          

We hereby consent to the incorporation by reference in the              
Prospectuses constituting part of the Registration Statements           
on Form S-3 (Registration No. 33-37970) of Tandy Corporation            
and Form S-3 (Registration No. 33-15624) of Tandy Credit                
Corporation and to the incorporation by reference in the                
Registration Statements on Form S-8 (Registration Nos.                  
33-23178, 33-41523, 33-51019, 33-51599 and 33-51603) of our             
report dated February 22, 1995, appearing on page 28 in this            
Annual Report on Form 10-K.                                             

/s/ Price Waterhouse LLP                                                
------------------------                                                
PRICE WATERHOUSE LLP                                                    

Fort Worth, Texas                                                       
March 30, 1995                                                          

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘10-K’ Filing		Date		First		Last			Other Filings
		12/30/02		17
		12/30/00		17
		6/30/00		17					10-Q
		6/22/00		17
		9/9/99		17
		8/25/96		7		17
		7/12/96		7		17			SC 13D
		4/15/95		7		17
		3/31/95		17					10-Q,  11-K
Filed on:		3/30/95		4		30			8-K,  DEF 14A
		3/21/95		1		5
		3/10/95		7		27
		2/25/95		7		17
		2/22/95		12		30
		2/3/95		18					8-K
		2/2/95		18					8-K
		1/23/95		7		17
		1/22/95		4
		1/18/95		18					8-K
		1/16/95		17
		1/15/95		17
		1/3/95		3
		1/1/95		4		26
For Period End:		12/31/94		1		27			11-K
		12/30/94		3		17			8-K
		12/16/94		5
		12/15/94		17
		10/11/94		3		17
		9/30/94		17					10-Q,  10-Q/A,  11-K
		8/15/94		18					10-Q
		8/1/94		7		17			8-K
		7/1/94		17
		6/30/94		7		17			10-Q,  11-K
		6/15/94		7		17
		5/27/94		18
		5/12/94		3		7
		5/11/94		3		7
		4/1/94		7		17
		3/31/94		17					10-Q,  11-K
		3/30/94		18					10-K,  DEF 14A
		2/25/94		7		17
		2/23/94		7		17
		2/2/94		3		17
		2/1/94		18
		1/27/94		7		17
		1/26/94		18
		1/1/94		4
		12/31/93		7		27			10-K,  11-K,  DEF 14A
		12/16/93		3		17
		11/12/93		18
		11/10/93		7		17
		10/14/93		18
		9/30/93		7
		9/3/93		18
		9/1/93		17
		8/5/93		7		17
		8/4/93		18
		7/30/93		7		17
		7/27/93		18
		7/23/93		7		17
		7/22/93		7		17
		7/16/93		7		17
		7/13/93		3		18
		7/7/93		4
		6/30/93		17		18
		6/25/93		3		17
		3/31/93		17
		3/29/93		18
		1/10/93		17
		1/1/93		7		17
		12/31/92		7		27
		7/10/92		18
		6/30/92		7		27
		3/31/92		17
		2/13/92		18
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