Chapter 5 Assignment (Adapted from ATC 5-1 in Text) Use the Target Corporation Form 10-K to answer the following questions related to Target's 2018 Fiscal Year. Note that Target's Fiscal Year ends in late January or early February, so the 2018 Fiscal Year ends February 2, 2019. You will need to use the financial statements as well as notes to the financial statements to answer the questions Show your calculations and extend all decimal points at least 2 places. Required a. What percentage of Target's total assets did inventory represent at the end of FY 2018 and 2017 (Hint: use the Statement of Financial Position)? b. Comment on the change in the % of total assets inventory represents between the years. Is this a positive or a negative and why? What cost flow method did Target use to account for its inventory (Hint use the footnotes beginning on page 40 of the 10-K)? c. d. Target had arrangements with some of its vendors such that it does not purchase or pay for merchandise inventory until the merchandise is sold to outside customers. Was the cost of these goods ever included in the Inventory account (Hint: use the footnotes beginning on page 40 of the 10- K. You will find this discussed in Note 3)? 3:31 PM 96% Sprint Close Expert Q&A 0 Expert Answer Anonymous 4 hours later (a): Target's total revenue for 2017 = $71.879 million. Net earnings-$2.934 million. Thus %-293471879-4.08% (b): Cost of goods sold-$51,125 million. Thus % 51 1 25/71 879-71 . 1 3% 2017 2016 2015 Sales 71,879.0069,495.00 73,785.00 Cost of sales 51,125.0049,145.00 52,241.00 Gross margin 20,754.0020,350.00 21,544.00 Cost of sales as a % of 70.80 71.13 70.72 sales Gross margin asa%of 28.87 29.28 29.20 sales We can see that cost of goods sold is increasing each year 0 g 0 Was this answer helpful? 0 Consolidated Statements of Operations - 12 Months Ended USD ($) shares in Millions, $ in Millions Feb. 03,2018 $72,714 Jan. 28,2017 $70,271 49,145 Feb. 02, 2019 75,356 53,299 22,057 15,723 Total revenue 51,125 Cost of sales 21,126 21,589 Gross Margin Selling, general and administrative Depreciation and amortization (exclusive 14,217 15,140 2,045 2,225 2,224 4,110 4,864 4,224 Operating income 991 653 461 Net interest expense (88) 3,961 (59) 3,630 (27) Net other (income)/expense Earnings from continuing operations 3,676 722 1,295 2,666 746 Provision for income taxes 2,908 2,930 Net earnings from continuing operations Discontinued operations, net of tax Net earnings 68 $ 2,734 $2,914 $ 2,937 Consolidated Statements of Financial Position-USD 2017 Feb.02,2019eb.0 03, 2018 Jan. 28, ($) $ in Millions $ 2,512 8,309 $2,643 $1,556 Cash and cash equivalents 8,597 Inventory 1,169 1,300 1,466 Other current assets 11,990 12,519 Total current assets Property and equipment 6,106 6,095 6,064 Land 27,611 28,131 29,240 Buildings and improvements Fixtures and equipment 5,503 5,623 5,912 2,645 2,651 Computer hardware and software Construction-in-progress 440 200 460 44,220 42,071 (17,413) 42,934 Total Property and Equipment at Cost Accumulated depreciation 18,398 24,658 25,533 1,965 1,273 24,536 Property and equipment, net Operating lease assets 783 1,343 Other noncurrent assets 37,431 41,290 Total assets Liabilities and shareholders' investment Accounts payable 7,252 3,737 8,677 9,761 4,201 Accrued and other current liabilities 1,718 281 1,052 Current portion of long-term debt and other Total current liabilities 12,707 15,014 11,031 11,117 10,223 Long-term debt and other borrowings Noncurrent operating lease liabilities 2,004 1,924 861 972 693 Deferred income taxes 1,879 1,866 1,780 Other noncurrent liabilities 13,771 14,979 15,600 Total noncurrent liabilities 26,478 29,993 28,652 Total Liabilities Shareholders' investment Common stock 5,661 5,858 Additional paid-in capita Retained earnings 5,884 6,017 (638) (805) Accumulated other comprehensive loss 10,953 11,651 11,297 Total shareholders' investment $41,290 $40,303 37,431 Total liabilities and shareholders' investment Common Stock Authorized 6,000,000,000 shares, $0.0833 par value 517,761,600 Issued and outstanding shares at February 2, 2019 541,681,670 Issued and outstanding shares at February 3, 2018 Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding at