Evaluating Dayton Hudson’s Financial Position Following are the comparative balance sheets (next page) and footnote disclosure relating to accounts receivable for Dayton Hudson Corporation:

Retained Securitized Receivables The fair value of the retained securitized receivables was lower than the aggregate receivables value by $126 million and $119 million at year-end 1997 (January 31, 1998) and 1996 (February 1, 1997), respectively, due to our estimates of ultimate collectibility.

The securitization of accounts receivable permits the company to borrow against the balance of accounts receivable.

a. Is the company’s liquidity position better or worse at January 31, 1998, as compared with February 1, 1997? Explain.

b. What is the amount owed to Dayton Hudson by its customers at January 31, 1998? How much of that amount does the company expect to receive?

c. What is the total original historical cost of property and equipment in service (use) at January 31, 1998?

d. What is the total net book value of property and equip-ment in service (use) at January 31, 1998?

e. How much of the long-term debt does the company expect to pay off in the next year?

f. How many classes of stock does the company have out standing?

g. Has the company generally been profitable or unprofitable since its inception? How do you know?