Assume that you are a prospective shareholder of Target Corporation (TGT), a retaler of"everyday essentials and fashionable, differentiated financial data for Target to ratio analysis often identify issues requiring additional investigation. prices, and are interested in the company's historical and current financial activities and performance. Use the following complete and conduct your financial ratio analysis. Then answer the questions that follow. Remember, the results of a Target Corporation Selected Income Statement, Balance Sheet, and Related Datal 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 2009 2008 $65,786,000,000 $63,435,000,000 $62,884,000,000 45,725,000,000 44,062,000,000 44,157,000,000 20,061,000,000 19,373,000,000 18,727,000,000 13,469,000,000 13,078,000,000 12,954,000,000 860,000,000 1,521,000,000 1,609,000,000 ,252,000,000 4,673,000,000 4,402,000,000 66,000,000 ,495,000,000 3,872,000,000 3,536,000,000 1,575,000,0001,384,000,000 1,322,000,000 $2,920,000,000 $2,488,000,000 $2,214,000,000 465,000,000 $0.62 757,000,000 801,000,000 609,000,000 0.92 496,000,000 $0.67 Given Target's financial data, answer the following questions: Does Target have sufficient liquid resources to meet its short-term financial commitments? What factors are contributing to or detracting from the firm's liquidity? Are there any operational behaviors that affect Target's liquidity that should be investigated further? Target Corporation Liquidity Ratios Compute the current and quick ratios for 2008 through 2010 and evaluate the behavior of the ratios and the related accounts in Target's financial statements Current ratio Finance in Action-Ratio Analysis Dividends per share $0.92 $0.67 0.62 Given Target's financial data, answer the foilowing questions: Does Target have sufficient liquid resources to meet its short-term financial commitments? What factors are contributing to or detracting from the firm's liquidity? Are there any operational behaviors that affedt Target's liquidity that should be investigated further? Target Corporation Liquidity Ratios Compute the current and quick ratios for 2008 through 2010 and evaluate the behavior of the ratios and the related accounts in Target's financial statements: Current ratio 2010 2009 2008 Quick ratio 2010 2009 2008 1. Which of the folowing statements are correct Check all that apply. The ratio data for Target indicates that over the period of 2008-2010, its current ratios have exhibited a decreasing trend, but the trend for the quick ratios is increasing The cash and marketable securities and other current asset balances exhibit a mixed or variable patterm, increasing between 2008 and 2009 and decreasing between 2009 and 2010. In general, creditors will prefer high current and quick ratios to low current and quick ratios 2. Which of the following statements are correct? Check all that apply Although they should not be interpreted in isolation, t is reasonable to conclude that unfavorable liquidity ratios will tend to increase the market price of Target's shares, all other considerations remaining constant Target's current increasing ratio is as much a result of its increasing current assets as it is the result of its decreasing. current liabilities balances. The three-year trend of Target's current ratios,can be explained by its increasing cash and other current asset balances and decreasing other current iability balances D The quick ratio dta suggest that in 2008 and 2009 Target had less than a dollar's worth of current assets available to repay a dollar's worth of outstanding accounts payable D The quick ratio is the more rigorous test of Target's liquidity, compared to the current ratio. Therefore, it is reasonable to condlude that Target does not have a dollar's worth of immediately available current assets available to repay a dolilar's worth of current habilities that are due immediately Assume that you are a prospective shareholder of Target Corporation (TGT), a retaler of"everyday essentials and fashionable, differentiated financial data for Target to ratio analysis often identify issues requiring additional investigation. prices, and are interested in the company's historical and current financial activities and performance. Use the following complete and conduct your financial ratio analysis. Then answer the questions that follow. Remember, the results of a Target Corporation Selected Income Statement, Balance Sheet, and Related Datal 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 2009 2008 $65,786,000,000 $63,435,000,000 $62,884,000,000 45,725,000,000 44,062,000,000 44,157,000,000 20,061,000,000 19,373,000,000 18,727,000,000 13,469,000,000 13,078,000,000 12,954,000,000 860,000,000 1,521,000,000 1,609,000,000 ,252,000,000 4,673,000,000 4,402,000,000 66,000,000 ,495,000,000 3,872,000,000 3,536,000,000 1,575,000,0001,384,000,000 1,322,000,000 $2,920,000,000 $2,488,000,000 $2,214,000,000 465,000,000 $0.62 757,000,000 801,000,000 609,000,000 0.92 496,000,000 $0.67 Given Target's financial data, answer the following questions: Does Target have sufficient liquid resources to meet its short-term financial commitments? What factors are contributing to or detracting from the firm's liquidity? Are there any operational behaviors that affect Target's liquidity that should be investigated further? Target Corporation Liquidity Ratios Compute the current and quick ratios for 2008 through 2010 and evaluate the behavior of the ratios and the related accounts in Target's financial statements Current ratio Finance in Action-Ratio Analysis Dividends per share $0.92 $0.67 0.62 Given Target's financial data, answer the foilowing questions: Does Target have sufficient liquid resources to meet its short-term financial commitments? What factors are contributing to or detracting from the firm's liquidity? Are there any operational behaviors that affedt Target's liquidity that should be investigated further? Target Corporation Liquidity Ratios Compute the current and quick ratios for 2008 through 2010 and evaluate the behavior of the ratios and the related accounts in Target's financial statements: Current ratio 2010 2009 2008 Quick ratio 2010 2009 2008 1. Which of the folowing statements are correct Check all that apply. The ratio data for Target indicates that over the period of 2008-2010, its current ratios have exhibited a decreasing trend, but the trend for the quick ratios is increasing The cash and marketable securities and other current asset balances exhibit a mixed or variable patterm, increasing between 2008 and 2009 and decreasing between 2009 and 2010. In general, creditors will prefer high current and quick ratios to low current and quick ratios 2. Which of the following statements are correct? Check all that apply Although they should not be interpreted in isolation, t is reasonable to conclude that unfavorable liquidity ratios will tend to increase the market price of Target's shares, all other considerations remaining constant Target's current increasing ratio is as much a result of its increasing current assets as it is the result of its decreasing. current liabilities balances. The three-year trend of Target's current ratios,can be explained by its increasing cash and other current asset balances and decreasing other current iability balances D The quick ratio dta suggest that in 2008 and 2009 Target had less than a dollar's worth of current assets available to repay a dollar's worth of outstanding accounts payable D The quick ratio is the more rigorous test of Target's liquidity, compared to the current ratio. Therefore, it is reasonable to condlude that Target does not have a dollar's worth of immediately available current assets available to repay a dolilar's worth of current habilities that are due immediately