A B D E F G H 1 2 Horizontal Analysis of the Income Statements Target Corporation INSTRUCTIONS: Use the 2018 annual report for 2018 and 2017 figures. Use the 2017 annual report for the 2016 figures. Complete all greyed boxes. Ratios should be carried to 2 3 decimal places. 4 Sales (add both revenue figures) $ 5 Cost of sales 6Gross margin 7 Selling, general, and administrative expenses Depreciation and amortization 9 Operating Income Net interest expense Net other (income)/ expense 13 Provision for income taxes FY 2018 FY 2017 $ Change % Change 75,356 $ 72,714 $ 2,642 53,299 $ 51,125 $ 2,174 $ 22,057 $ 21,589 $ FY 2016 $ Change % Change 3.63% $ 69,495 $ 4.25% $ 49,145 $ 3,219 4.63% 1,980 4.03% 468 2.17% $20,350 $ 1,239 6.09% 15,723 $ 2,224 $ 15,140 $ 583 3.85% $ 13,356 $ 1,784 13.36% 2,225 $ (1) -0.04% $ 2,025 $ 200 9.88% $ 4,110 $ 4,224 $ (114) -2.70% $ 4,969 $ (745) -14.99% 461 $ 653 $ (192) -29.40% $ 1,004 $ (351) -34.96% $ (27) $ (59) $ 32 -54.24% $ $ (59) #DIV/O! 12 Earnings from continuing operations before income taxes $ 3,676 $ 3,630 $ 4 Net earnings from continuing operations $ 746 $ 2,930 $2,908 $ 722 $ 15 Discontinued operations, net of tax 16 Net earnings/(loss) 17 18 7 $ $ 2,937 6 $ $2,914 $ 42273 46 1.27% $ 3,965 $ (335) -8.45% 3.32% $ 1,296 $ (574) -44.29% 0.76% $ 2,669 $ 239 8.95% 1 16.67% $ 68 $ (62) -91.18% 0.79% $2,737 $ 177 6.47% 19 Horizontal Analysis of the Balance Sheets Target Corporation INSTRUCTIONS: Use the 2018 annual report for 2018 and 2017 figures; Use the 2017 annual report for the 2016 figures. Complete all greyed boxes. Ratios should be carried to 2 decimal places. ASSETS Cash and cash equivalents FY 2018 FY 2017 $ Change % Change FY 2016 $ Change % Change 1,556 $ 2,643 $ (1,087) -41.13% $ 2,512 $ 131 5.21% Inventory Other current assets 9,497 $ 8,597 $ 900 10.47% $ 8,309 $ 288 3.47% $ 1,466 $ 1,300 $ 166 12.77% $ 1,169 $ 131 11.21% Total current assets $ 12,519 $ 12,540 $ (21) -0.17% $ 11,990 $ 550 4.59% Property and equipment 0 Land 1 Buildings and equipment 2. Fixtures and equipment $ 6,064 $ 6,095 $ (31) -0.51% $ 3,106 $ 2,989 96.23% 29,240 $ 28,131 $ 1,109 3.94% $ 27,611 $ 520 1.88% 5,912 $ 5,623 $ 289 5.14% $ 5,503 $ 120 2.18% 4 3 Computer hardware and software Construction-in-progress 5 Accumulated depreciation 6 Property and equipment, net 7 Operating Lease Asets 8 Other noncurrent assets 9 TOTAL ASSETS 0 LIABILITIES Accounts payable 2 Accrued and other current liabilities 3 Current portion of long-term debt and other borrowings 4 Total current liabilities 5 Long-term debt and other borrowings 6 Noncurrent operating lease liabilities 7 Deferred income taxes 8 Other noncurrent liabilities 9 Total noncurrent liabilities 0 Total liabilities 1 SHAREHOLDERS' INVESTMENT 2 Common stock 3 Additional paid-in capital 4 Retained earnings 2,544 $ 2,645 $ (101) -3.82% $ 2,651 $ (6) -0.23% 460 $ 440 $ 20 4.55% $ 200 $ 240 120.00% (18,687) $ 25,533 $ (18,398) $ 24,536 $ (289) 1.57% $ (17,413) $ (985) 5.66% 997 1,965 $ 1,884 $ 81 $ 1,273 | $ 1,343 $ (70) $ 41,290 $ 40,303 $ 987 4.06% $ 4.30% $ -5.21% $ 2.45% $ 21,658 $ 2,878 13.29% 1,884 #DIV/O! 783 $ 560 71.52% 34,431 $ 5,872 17.05% 9,761 | $ 8,677 $ 1,084 12.49% $ 4,201 $ 4,094 $ 107 2.61% $ 7,252 $ 3,737 $ 1,425 19.65% 357 9.55% 1,052 $ 281 $ 771 274.38% $ 1,718 $ 15,014 $ 13,052 $ 1,962 15.03% $ 12,707 $ (1,437) 345 -83.64% 2.72% 10,223 | $ 11,117 $ (894) -8.04% $ 11,031 $ 86 0.78% 2,004 $ 1,924 $ 80 4.16% $ $ 1,924 #DIV/O! 972 $ 693 $ 279 40.26% $ 861 $ (168) -19.51% 1,780 $ 1,866 $ (86) -4.61% $ 1,879 $ (13) -0.69% $ 14,979 $ 15,600 $ (621) -3.98% $ 13,771 $ 1,829 13.28% $ 29,993 $ 28,652 $ 1,341 4.68% $ 26,478 $ 2,174 8.21% 43 $ 45 $ (2) -4.44% $ 46 $ (1) -2.17% 6,042 $ 5,858 $ 184 3.14% $ 5,661 $ 197 3.48% 6,017 $ 6,495 $ (478) 5 Accumulated other comprehensive loss (805) $ (747) $ (58) -7.36% $ 7.76% $ 5,884 $ 611 10.38% 6 Total shareholders' investment $ 11,297 $ 11,651 $ (354) 7 TOTAL LIABILITIES & SHAREHOLDERS' INVESTMENT $ 41,290 $ 40,303 $ 987 -3.04% $ 2.45% $ (638) $ 10,953 $ 37,431 $ (109) 17.08% 698 6.37% 2,872 7.67% 8 B C D E 1 2 Ratio Analysis Target Corporation The amounts used to the complete the ratios should come from the figures in Section 1 3 tabs. Be sure to present the ratio is the correct "format". Ratios should be carried to 2 LIQUIDITY FY 2018 FY 2017 4 Working capital 6. Formula current assets - current liabilities 7 Calculation Current ratio 9 0 Formula current assets / current liabilities Calculation 1 Quick ratio 2 3 4 5 6 Formula current assets - inventory/current liabilities Calculation Inventory turnover Formula Cost of goods sold / average inventory Calculation 7 Average days to sell inventory 8 9 20 21 Debt to assets Formula 365/inventory turnover Calculation SOLVENCY 22 23 Formula Total liabilities/total assets Calculation 24 Debt to equity 25 26 Formula total liabilities / total equity Calculation 27 Number of times interest is earned 28 29 Formula EBIT/Interest expense Calculation 0 Plant assets to long-term liabilities 81 $2 33 Formula Net plant assets/Long-term liabilities (debt and borrowings only) Calculation 54 Net margin (return on sales) 85 36 57 Asset turnover 38 89 PROFITABILITY Formula Net incomeet sales***for this use sales only (do not include other revenu Calculation Formula Net sales"" same as above average total assets Calculation 0 Return on investment 1 12 13 Return on equity 34 15 Formula Net income/ average total assets Calculation Formula Net income/average total stockholders' equity Calculation 16 Earnings per share 27 18 =0 51 9 Price-earnings Formula Net earnings available for common stock / average number of shares outst Calculation Formula Market price per share / earnings per share Calculation 71.17 and 72.95 are market price per share to use 2 Book value per share (common) 3 =4 55 6 =7 Formula Stockholders' equity - preferred stock/outstanding common shares Calculation 517.8 and 541.7 are the outstanding shares figure to use