5. A profitability assessment of Target Corporation Inc. Aa Aa A Financial Ratio Analysis of Target Corporation A Profitability Assessment Assume that you are a prospective business partner of Target Corporation (TGT), a retailer of "everyday essentials and fashionable, differentiated merchandise at discounted prices," and are interested in the company's historical and current financial activities and performance. Use the following financial data for Target to complete and conduct your financial ratio analysis. Then answer the questions that follow. Remember, the results of a ratio analysis often identify issues requiring additional investigation Target Corporation Selected Income Statement, Balance Sheet, and Related Data1 2009 Income Statement Sales Less: Cost of goods sold Gross profit Less: Selling, general, and administrative expenses Less: Other expenses Earnings before interest and taxes (EBIT) Less: Interest expense Earnings before taxes (EBT) Less: Taxes Net income Less: Common dividends paid Dividends per share 2010 2008 $65,786,000,000 $63,435,000,000 62,884,000,000 44,157,000,000 18,727,000,000 12,954,000,000 1,609,000,000 4,402,000,000 866,000,000 3,536,000,000 1,322,000,000 45,725,000,000 20,061,000,000 13,469,000,000 860,000,000 5,252,000,000 757,000,000 4,495,000,000 1,575,000,000 44,062,000,000 19,373,000,000 13,078,000,000 1,521,000,000 4,673,000,000 801,000,000 3,872,000,000 1,384,000,000 $2,920,000,000 $%2,488,000,000 $2,214,000,000 609,000,000 $0.92 496,000,000 465,000,000 $0.62 $0.67 Now consider the effectiveness of Target's revenue-generating and cost-containing activities and its profitability ratios. That is, how profitable is the company, and what return is earned by TGT's investors