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Compute ROA, Profit Margin, and Asset Turnover Refer to the financial information for Target Corporation, presented below: Target Corporation Balance Sheets January 31, February 1,

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Compute ROA, Profit Margin, and Asset Turnover Refer to the financial information for Target Corporation, presented below: Target Corporation Balance Sheets January 31, February 1, ($ millions) 2015 2014 Assets Cash and cash equivalents $2,210 $670 Inventory 8,790 8,278 Other current assets 3,087 2,625 Total current assets 14,087 11,573 Property and equipment, net 25,958 26,412 Other noncurrent assets 1,359 6,568 Total assets $41,404 $44,553 Liabilities and shareholders' investment 59 Accounts payable Accrued and other current liabilities Current portion of long-term debt and notes payable Total current liabilities Long-term debt Deferred income taxes Other noncurrent liabilities Total shareholders' investment Total liabilities and shareholders' investment $7,759 3,886 91 11,736 12,705 1,321 1,645 13,997 $41,404 $7,335 4,299 1,143 12,777 11,429 1,349 2,767 16,231 $44,553 Target Corporation Income Statement ($ millions) Sales revenue Cost of sales Selling, general and administrative expenses Depreciation and amortization Earnings from continuing operations before interest and income taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings (loss) Fiscal year ended January 31, 2015 $72,618 51,278 14,676 2,129 4,535 882 3,653 1,204 2,449 (4,085) $(1,636) a. Compute its return on assets (ROA) for the fiscal year ending January 31, 2015. Compute ROA using net earnings (loss). Assume a statutory tax rate of 35%. Round your answer to one decimal place. Use negative sign with answer, if appropriate. Return on Assets = 0 % b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). Round your answers to one decimal place. Use negative sign with answers, if appropriate Profit Margin = 0 % Asset Turnover = 0

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