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 2015 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 2015 Annual Report.

Requirements
1. How much in cash (including cash equivalents) did Target Corporation have on January 30, 2016?
2. What were the company’s total assets at January 30, 2016? At January 31, 2015?
3. Write the company’s accounting equation at January 30, 2016, by filling in the dollar amounts:

Assets = Liabilities + Equity

4. Identify total sales (revenues) for the year ended January 30, 2016. How much did total revenue increase or decrease from fiscal year 2014 to fiscal year 2015? (Because Target’s fiscal year end of January 30, 2016 ends at the beginning of 2016, the majority of Target’s financial results were obtained in the calendar year of 2015. As a result, Target calls the fiscal year 2015 even though the year reported on the annual report ends on January 30, 2016.)
5. How much net income (net earnings) or net loss did Target earn for 2015 and for 2014? Based on net income, was 2015 better or worse than 2014?
6. Calculate Target Corporation’s return on assets for the year ending January 30, 2015.
7. How did Target Corporation’s return on assets compare to Kohl’s Corporation return on assets?