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 ($ millions)	February 3, 2018	January 28, 2017
Assets
Cash and cash equivalents	$2,643	$2,512
Inventory	8,657	8,309
Other current assets	1,264	1,169
Total current assets	12,564	11,990
Property and equipment, net	25,018	24,658
Other noncurrent assets	1,417	783
Total assets	$38,999	$37,431
Liabilities and shareholders investment
Accounts payable	$8,677	$7,252
Accrued and other current liabilities	4,254	3,737
Current portion of long-term debt and notes payable	270	1,718
Total current liabilities	13,201	12,707
Long-term debt	11,317	11,031
Deferred income taxes	713	861
Other noncurrent liabilities	2,059	1,879
Total shareholders investment	11,709	10,953
Total liabilities and shareholders investment	$38,999	$37,431

Income Statement ($ millions)	Fiscal year ended February 3, 2018
Sales revenue	$71,879
Cost of sales	51,125
Selling, general and administrative expenses	14,248
Depreciation and amortization	2,194
Earnings from continuing operations before interest and income taxes	4,312
Net interest expense	666
Earnings from continuing operations before income taxes	3,646
Provision for income taxes	718
Net earnings from continuing operations	2,928
Discontinued operations, net of tax	6
Net earnings (loss)	$2,934

a. Compute Target's current ratio and quick ratio for February 2018 and January 2017. (Round your answers to one decimal place.) 2018 Current Ratio Answer

2017 Current Ratio Answer

2018 Quick Ratio Answer

2017 Quick Ratio Answer

b. Compute Targets times interest earned for the year ended February 3, 2018, and its debt-to-equity ratios for February 2018 and January 2017. (Round your answers to one decimal place.) 2018 Times Interest Earned Answer

2018 Debt-to-Equity Ratio Answer

2017 Debt-to-Equity Ratio Answer