Target Corporation (TGT) is one of the largest retailers in the United States. Target operates over 1,800 stores that sell a wide assortment of merchandise, including a variety of grocery items.
Target recently reported the following end-of-year balance sheet data (in millions):

a. Compute the ratio of liabilities to stockholders’ equity for all three years. Round to two decimal places.
b. What conclusions regarding the margin of protection to creditors can you draw from the trend in this ratio for the three years?

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Year 3 Year 2 Year 1 Total assets $41,290 $40,303 $37,431 Total liabilities 29,993 28,652 26,478 Total stockholders' equity 11,297 11,651 10,953