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2015 Analysis and Interpretation of Liquidity and Solvency Refer to the financial information for Target Corporation (TGT), presented below, to answer the following. Target Corporation

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2015 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 31, February 1, ($ millions) 2014 Assets Cash and cash equivalents $2,210 $670 Inventory 8,790 8,278 Other current assets 3,087 2,625 Total current assets 14,087 11,573 Property and equipment, net 25,958 26,412 Other noncurrent assets 1,359 6,568 Total assets $41,404 $44,553 Liabilities and shareholders' investment Accounts payable $7,759 $7,335 Accrued and other current liabilities 3,886 4,299 Current portion of long-term debt and notes payable 91 1,143 Total current liabilities 11,736 12,777 Long-term debt 12,705 11,429 Deferred income taxes 1,321 1,349 Other noncurrent liabilities 1,645 2,767 Total shareholders' investment 13,997 16,231 Total liabilities and shareholders' investment $41,404 $44,553 Target Corporation Income Statement Fiscal year ended ($ millions) January 31, 2015 Sales revenue $72,618 Cost of sales 51,278 Selling general and administrative expenses 14,676 Depreciation and amortization 2,129 Earnings from continuing operations before interest and income taxes 4,535 Net interest expense Earnings from continuing operations before income taxes 3,653 Provision for income taxes 1,204 2,449 Net earnings from continuing operations (4,085) Discontinued operations, net of tax $(1,636) Net earnings (loss) 882 a. Compute Target's current ratio and quick ratio for January 2015 and February 2014. (Round your answers to one decimal place.) 2015 Current Ratio 0 2014 Current Ratio o 2015 Quick Ratio o 2014 Quick Ratio o b. Compute Target's times interest earned for the year ended January 31, 2015, and its debt-to-equity ratios for January 2015 and February 2014. (Round your answers to one decimal place.) 2015 Times Interest Earned 0 2015 Debt-to-Equity Ratio 0 2014 Debt-to-Equity Ratio 0 Net

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