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 identify issues requiring additional investigation. Given Target's financial data, answer the following questions: using its available liquid resources, can Target pay its current bills and other obligations that are expected to become due within the next 12 months? What performance and operational behaviors are increasing or decreasing Target's liquidity? Are there any behaviors that should be investigated further? 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: 1. Which of the following statements are correct? Check all that apply. The ratio data for Target indicate that over the period of 2008-2010, its current ratios have exhibited an increasing trend, while the trend for the quick ratios is decreasing. Target's sales are consistently increasing, but its receivables are decreasing and Its Inventory balances are increasing. Target's sales are consistently decreasing, but its receivables are increasing and its inventory balances are decreasing. Which of the following statements are correct? Check all that apply. It would appear that Target is becoming less liquid when relying solely on its holdings of cash, marketable securities, and receivables but more liquid when relying on its entire holdings of current assets. This implies that Target's inventory holdings are increasing. The next step should be to determine if the firm's inventory levels are appropriate for the corresponding level of sales or if any operational changes have been made that would explain the inventory buildup. The current ratio data suggests that during the period of 2008 to 2010, Target has more than $1.65 of current assets available to repay a dollar's worth of outstanding accounts payable. The buildup in Other Current Assets is contributing to Target's increased liquidity. Target's current ratio suggests that it has sufficient liquid assets to pay its current obligations, but its quick ratio indicates that much of this apparent liquidity is illusory-and attributable to increases in its inventory holdings. Target's inventory is probably relatively illiquid, and should not be counted on to pay immediately due bills. If Target's inventories are not truly liquid, then the firm may have difficulty paying its current obligations-unless it has a backup source of cash, such as additional cash income or a backup source of credit