2012 Analysis and Interpretation of Liquidity and Solvency Refer to the financial information for Target Corporation (TGT), presented below to answer the following. Target Corporation Balance Sheets January 28, January 29, ($ millions) 2011 Assets Cash and cash equivalents $1,794 $2,712 Accounts receivable, net 7,927 8,153 Inventory 7,918 7,596 Other current assets 1,810 1,752 Total current assets 19,449 20,213 Property and equipment, net 27,149 23,493 Other noncurrent assets 1,032 999 Total assets $47,630 $44,705 Liabilities and shareholders' investment Accounts payable $6,857 $6,625 Accrued liabilities 3,644 3,326 Current portion of long-term debt and notes payable 3,786 119 Total current liabilities 14,287 10,070 Long-term debt 16,697 14,607 Deferred income taxes 1,191 934 Other noncurrent liabilities 1,634 1,607 Total shareholders' investment 13,821 17,487 Total liabilities and shareholders' investment $47,630 $44,705 Target Corporation Income Statement Fiscal year ended ($ millions) January 28, 2012 Sales $69,766 Net credit card revenues 1,399 Total revenues 71,165 Cost of sales 47,860 Selling, general and administrative expenses 14,106 Credit card expenses 446 Depreciation and amortization 2,131 Earnings before interest expense and income taxes 6,622 Net interest expense 866 Earnings before income taxes 5,756 Provision for income taxes 1,527 Net earnings $4,229 a. Compute Target's current ratio and quick ratio for 2012 and 2011. (Round your answers to one decimal place.) 2012 Current Ratio 1.4 2011 Current Ratio 2 2012 Quick Ratio 0.8 X b. Compute Target's times interest earned for the year ended January 28, 2012, and its debt-to-equity ratios for 2012 and 2011. Interest income for this year was $3 million, so interest expense was $869 million. (Round your answers to one decimal place.) 2012 Times Interest Earned 0 x 2012 Debt-to-Equity Ratio 0 X 2011 Debt-to-Equity Ratio 0 Check