Assume that you are an existing supplier 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 ldentify issues requiring additional investigation. Target Corporation Selected Income Statement, Balance Sheet, and Related Data Income Statement Sales Less: Cost of goods sold Gross proft 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 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 1,609,000,000 5,252,000,000 4,673,000,000 4,402,000,000 866,000,000 4,495,000,000 3,872,000,000 3,536,000,000 1,575,000,000 1,384,000,000 1,322,000,000 2,920,000,000 $2,488,000,000 $2,214,000,000 465,000,000 $0.62 2010 2009 860,000,000 1,521,000,000 757,000,000 801,000,000 609,000,000 $0.92 496,000,000 $0.67 Dividends per share Given Target's financial data, answer the questions that follow: How much and what percentage of the company's assets are financed with borrowed money, and can the company afford to repay these contractual obligations? To answer these questions, evaluate each debt management ratio and the trend of the comp Target Corporation Given Target's financial data, answer the questions that follow: How much and what percentage of the company's assets are financed with borrowed money, and can the company aTord to repay these contractual obligations? To answer these questions, evaluate each debt management ratio and the trend of the component account balances Target Corporation Debt Management Ratios 1. Over the period of 2008 to 2010, Target's use of debt capital, in dollar terms, consistently from year to year, as did the company's debt ratio. Debt ratio 2010 2009 2008 Equity ratio 2010 2009 2008 TO dentify the accounts that contributed to these behaviors, consider the f uctuations in the asset and liability accounts over the three-year period. Therefore, from 2008 to 2010, the accounts that contributed to the previously ident fied change in the debt ratio include which of the following? Check all that apply. Other long-term assets, which changed by $137,000,000 D Receivables, which changed by $1,931,000,000 Other current assets, which changed by $83,000,000 Long-term liabilities, which changed by $1,734,000,000 Accruals, which changed by $413,000,000 Payables, which changed by $288,000,000 Inventory, which changed by $891,000,000 Equity muiltiplier 2010 2009 2008 TIE ratio 2010 2009. 2008 D Cash and marketable securities, which changed by $848,000,000 Net fixed assets, which changed by $263,000,000 d Other current liablities, which changed by $1,143,000 , indicates the dollars of total 2. The reciprocal of the assets financed per dollar of equity financing. This value is one component of the equation, which is used to disaggregate the company's return on equity (R of financial performance: the company's of called per dollar ofu OE) into three important drivers asset ilization efficiency, and use The data indicates that as Target's debt ratio decreases, its equity multiplier 3. which of the following statements are correct? Check alil that appy r of the TIE ratio is the trend in Target's interest expense Assume that you are an existing supplier 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 ldentify issues requiring additional investigation. Target Corporation Selected Income Statement, Balance Sheet, and Related Data Income Statement Sales Less: Cost of goods sold Gross proft 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 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 1,609,000,000 5,252,000,000 4,673,000,000 4,402,000,000 866,000,000 4,495,000,000 3,872,000,000 3,536,000,000 1,575,000,000 1,384,000,000 1,322,000,000 2,920,000,000 $2,488,000,000 $2,214,000,000 465,000,000 $0.62 2010 2009 860,000,000 1,521,000,000 757,000,000 801,000,000 609,000,000 $0.92 496,000,000 $0.67 Dividends per share Given Target's financial data, answer the questions that follow: How much and what percentage of the company's assets are financed with borrowed money, and can the company afford to repay these contractual obligations? To answer these questions, evaluate each debt management ratio and the trend of the comp Target Corporation Given Target's financial data, answer the questions that follow: How much and what percentage of the company's assets are financed with borrowed money, and can the company aTord to repay these contractual obligations? To answer these questions, evaluate each debt management ratio and the trend of the component account balances Target Corporation Debt Management Ratios 1. Over the period of 2008 to 2010, Target's use of debt capital, in dollar terms, consistently from year to year, as did the company's debt ratio. Debt ratio 2010 2009 2008 Equity ratio 2010 2009 2008 TO dentify the accounts that contributed to these behaviors, consider the f uctuations in the asset and liability accounts over the three-year period. Therefore, from 2008 to 2010, the accounts that contributed to the previously ident fied change in the debt ratio include which of the following? Check all that apply. Other long-term assets, which changed by $137,000,000 D Receivables, which changed by $1,931,000,000 Other current assets, which changed by $83,000,000 Long-term liabilities, which changed by $1,734,000,000 Accruals, which changed by $413,000,000 Payables, which changed by $288,000,000 Inventory, which changed by $891,000,000 Equity muiltiplier 2010 2009 2008 TIE ratio 2010 2009. 2008 D Cash and marketable securities, which changed by $848,000,000 Net fixed assets, which changed by $263,000,000 d Other current liablities, which changed by $1,143,000 , indicates the dollars of total 2. The reciprocal of the assets financed per dollar of equity financing. This value is one component of the equation, which is used to disaggregate the company's return on equity (R of financial performance: the company's of called per dollar ofu OE) into three important drivers asset ilization efficiency, and use The data indicates that as Target's debt ratio decreases, its equity multiplier 3. which of the following statements are correct? Check alil that appy r of the TIE ratio is the trend in Target's interest expense