This and similar cases in later chapters focus on the financial statements of a real company— Target Corporation, a discount merchandiser that sells a wide assortment of general merchandise and food. Target sells both national and private and exclusive brands, with approximately one-third of its 2018 sales related to private and exclusive brands. As you work each case, you will gain confidence in your ability to use the financial statements of real companies.
Visit http://www.pearsonhighered.com/Horngren to view a link to Target Corporation’s Fiscal 2018 Annual Report.

Requirements
1. How much in cash (including cash equivalents) did Target Corporation have on February 2, 2019?
2. What were the company’s total assets at February 2, 2019? At February 3, 2018 (as adjusted)?
3. Why were the financial statements for year ending on February 3, 2018 adjusted? Review Note 2 of the accompanying Notes to Consolidated Financial Statements.
4. Write the company’s accounting equation at February 2, 2019, by filling in the dollar amounts:

Assets = Liabilities + Equity

5. Identify total sales (revenues) for the year ended February 2, 2019. How much did total revenue increase or decrease from fiscal year 2017 to fiscal year 2018? (Because Target’s fiscal year end of February 2, 2019 ends at the beginning of 2019, the majority of Target’s financial results were obtained in the calendar year of 2018. As a result, Target calls the fiscal year 2018 even though the year reported on the annual report ends on February 2, 2019.) 

6. How much net income (net earnings) or net loss did Target earn for 2018 and for 2017? Based on net income, was 2018 better or worse than 2017? 

7. Calculate Target Corporation’s return on assets for the year ending February 2, 2019. Round to one decimal place. 8. How did Target Corporation’s return on assets compare to Kohl’s Corporation’s return on assets?