1. By what name does Target label its balance sheet? Consolidated Statements of Financial Position 2. What amounts did Target report for the following items for the year ended February 3. 2018? a. current assets b. long-term assets c. total assets d. current liabilities e. long-term liabilities f. total liabilities g. total shareholders' equity 3. What was Target's largest current asset and largest current liability? 4. Compute Target's current ratio and debt to equity ratio? 5. Assuming Target's industry had an average current ratio of 1.0 and an average debt to equity ratio of 2.5 , comment on Target's liquidity and long-term solvency using your answer for above question 4 . 6. By what name does Target label its income statement? 7. What amounts did Target report for the following items for the year ended February 3,2018 ? a. sales b. gross margin c. earnings from continuing operations before income taxes d. net earnings from continuing operations e. net earnings 8. Does Target report any items as part of its comprehensive income? If so, what are they? 9. Does Target prepare the statement of cash flows using the direct method or the indirect method? 10. Which is higher, net earnings or operating cash flows? Which line item is the biggest reason for the difference? explain why. Financial Summary Target 2017 Annual Report \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline & & 2017 if & & 2016 & & 2015 & & 2014 & & 2013 \\ \hline Sales = & s & 71879 & $ & 69,496 & $ & 73,785 & $ & 72.618 & $ & 71279 \\ \hline Gross margin & & 20,754 & & 20,350 & & 21,544 & & 24112 & & 21,036 \\ \hline Selling generd and administratwe expenses (SGSA) & & 14,248 & & 13,356 & & 14,605 & & 14676 & & 14,465 \\ \hline Depreciationandamortization(exclusiveofdepreciationincludedoncostofsabs)w & & 2,194 & & 2005 & & 1999 & & 1901 & & UNA2 \\ \hline Gain on sale ta & & - & & - & & & & - & & p95 \\ \hline Earningsfromcontinuingoperationsboforeintorestexponseandincometaxes(EBIT) & & 4,312 & & 4969 & & 5,530 & & 4535 & & 5,770 \\ \hline Net interest expense = & & 666 & & 1004 & & 607 & & 882 & & 1049 \\ \hline Earnings from continuing operations before income taxes & & 3,646 & & 3,965 & & 4,923 & & 3,653 & & 4,121 \\ \hline Provision for income taxes * & & 718 & & 1,296 & & 160e & & 1204 & & \\ \hline \multicolumn{11}{|l|}{ PER SHARE: } \\ \hline \multicolumn{11}{|l|}{ Basic eamings / (loss) per share } \\ \hline Contiruing operations & s & 5.35 & $ & 462 & s & 529 & $ & 3.86 & & 5.24 \\ \hline Discontinued operations & & 0.01 & & 0.12 & & 0.07 & & & & (x) \\ \hline Net earrings / (loss) per share & s & 5.36 & $ & 4.74 & 5 & 5.35 & 5 & (258) & $ & 310 \\ \hline \multicolumn{11}{|l|}{ Diluted eamings / (loss) per share } \\ \hline Contiruing operations & s & 5.32 & $ & 4.58 & s & 525 & $ & 383 & s & 420 \\ \hline Discontinued operations & & 0.01 & & 0.12 & & 0.07 & & (b.3e) & & (xts) \\ \hline Net earnings / (loss) per share & s & 5.33 & $ & 470 & s & 5.31 & 5 & (256) & $ & 307 \\ \hline Cash dividends declared & $ & 2.46 & $ & 2.36 & 5 & 2.20 & $ & 199 & $ & 166 \\ \hline Comparable sales growth a & & 1.3% & & 0.5)% & & 21% & & 13% & & \\ \hline Gross margin ( % of sules) = & & 28.9% & & 29.3% & & 292% & & & & 205% \\ \hline SG8A. (96 of sales) & & 19.8% & & 19.2% & & 196% & & 200% & & 20.2% \\ \hline EAIT margin ( % of sales) & & 6.0% & & 73% & & 6.9% & & 658 & & 6.656 \\ \hline \multicolumn{11}{|l|}{ OTHER: } \\ \hline Common shares outstanding (n milions) & & 541.7 & & 5562 & & 6002 & & 6+02 & & 6329 \\ \hline Operating cash flow provided by continuing operations (in millions) & s & 6,849 & $ & 5.329 & 8 & 5,254 & s & 5,157 & 8 & 7,572 \\ \hline Sales per square foot in & s & 295 & $ & 290 & s & 307 & s & 302 & $ & 298 \\ \hline Retail square feet (in thousands) is & & 239,355 & & 239,502 & & 230539 & & 280,963 & & 240054 \\ \hline Square footage growth & & (0.1)% & & x & & 10.2%% & & & & ogs \\ \hline Total number of storets u & & 1,822 & & 1802 & & 1,792 & & 1790 & & twos \\ \hline Total number of distribution centers = & & 41 & & 40 & & 40 & & 38 & & 32 \\ \hline \end{tabular} 1. By what name does Target label its balance sheet? Consolidated Statements of Financial Position 2. What amounts did Target report for the following items for the year ended February 3. 2018? a. current assets b. long-term assets c. total assets d. current liabilities e. long-term liabilities f. total liabilities g. total shareholders' equity 3. What was Target's largest current asset and largest current liability? 4. Compute Target's current ratio and debt to equity ratio? 5. Assuming Target's industry had an average current ratio of 1.0 and an average debt to equity ratio of 2.5 , comment on Target's liquidity and long-term solvency using your answer for above question 4 . 6. By what name does Target label its income statement? 7. What amounts did Target report for the following items for the year ended February 3,2018 ? a. sales b. gross margin c. earnings from continuing operations before income taxes d. net earnings from continuing operations e. net earnings 8. Does Target report any items as part of its comprehensive income? If so, what are they? 9. Does Target prepare the statement of cash flows using the direct method or the indirect method? 10. Which is higher, net earnings or operating cash flows? Which line item is the biggest reason for the difference? explain why. Financial Summary Target 2017 Annual Report \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline & & 2017 if & & 2016 & & 2015 & & 2014 & & 2013 \\ \hline Sales = & s & 71879 & $ & 69,496 & $ & 73,785 & $ & 72.618 & $ & 71279 \\ \hline Gross margin & & 20,754 & & 20,350 & & 21,544 & & 24112 & & 21,036 \\ \hline Selling generd and administratwe expenses (SGSA) & & 14,248 & & 13,356 & & 14,605 & & 14676 & & 14,465 \\ \hline Depreciationandamortization(exclusiveofdepreciationincludedoncostofsabs)w & & 2,194 & & 2005 & & 1999 & & 1901 & & UNA2 \\ \hline Gain on sale ta & & - & & - & & & & - & & p95 \\ \hline Earningsfromcontinuingoperationsboforeintorestexponseandincometaxes(EBIT) & & 4,312 & & 4969 & & 5,530 & & 4535 & & 5,770 \\ \hline Net interest expense = & & 666 & & 1004 & & 607 & & 882 & & 1049 \\ \hline Earnings from continuing operations before income taxes & & 3,646 & & 3,965 & & 4,923 & & 3,653 & & 4,121 \\ \hline Provision for income taxes * & & 718 & & 1,296 & & 160e & & 1204 & & \\ \hline \multicolumn{11}{|l|}{ PER SHARE: } \\ \hline \multicolumn{11}{|l|}{ Basic eamings / (loss) per share } \\ \hline Contiruing operations & s & 5.35 & $ & 462 & s & 529 & $ & 3.86 & & 5.24 \\ \hline Discontinued operations & & 0.01 & & 0.12 & & 0.07 & & & & (x) \\ \hline Net earrings / (loss) per share & s & 5.36 & $ & 4.74 & 5 & 5.35 & 5 & (258) & $ & 310 \\ \hline \multicolumn{11}{|l|}{ Diluted eamings / (loss) per share } \\ \hline Contiruing operations & s & 5.32 & $ & 4.58 & s & 525 & $ & 383 & s & 420 \\ \hline Discontinued operations & & 0.01 & & 0.12 & & 0.07 & & (b.3e) & & (xts) \\ \hline Net earnings / (loss) per share & s & 5.33 & $ & 470 & s & 5.31 & 5 & (256) & $ & 307 \\ \hline Cash dividends declared & $ & 2.46 & $ & 2.36 & 5 & 2.20 & $ & 199 & $ & 166 \\ \hline Comparable sales growth a & & 1.3% & & 0.5)% & & 21% & & 13% & & \\ \hline Gross margin ( % of sules) = & & 28.9% & & 29.3% & & 292% & & & & 205% \\ \hline SG8A. (96 of sales) & & 19.8% & & 19.2% & & 196% & & 200% & & 20.2% \\ \hline EAIT margin ( % of sales) & & 6.0% & & 73% & & 6.9% & & 658 & & 6.656 \\ \hline \multicolumn{11}{|l|}{ OTHER: } \\ \hline Common shares outstanding (n milions) & & 541.7 & & 5562 & & 6002 & & 6+02 & & 6329 \\ \hline Operating cash flow provided by continuing operations (in millions) & s & 6,849 & $ & 5.329 & 8 & 5,254 & s & 5,157 & 8 & 7,572 \\ \hline Sales per square foot in & s & 295 & $ & 290 & s & 307 & s & 302 & $ & 298 \\ \hline Retail square feet (in thousands) is & & 239,355 & & 239,502 & & 230539 & & 280,963 & & 240054 \\ \hline Square footage growth & & (0.1)% & & x & & 10.2%% & & & & ogs \\ \hline Total number of storets u & & 1,822 & & 1802 & & 1,792 & & 1790 & & twos \\ \hline Total number of distribution centers = & & 41 & & 40 & & 40 & & 38 & & 32 \\ \hline \end{tabular}