Financial Statement Analysis?

Question 3 For the last two reporting periods calculate Target's gross margin ratio using the following formula: Gross margin ratio - Gross margin / Sales (round to two decimal place, for example.1082147 - 10.829.) Then select the correct answer below based on Target's gross margin ratio. O a. The gross margin ratio increased from 2018 to 2019. Ob. The gross margin ratio decreased from 2018 to 2019, Oc. There was no change in the gross margin ratio between 2018 and 2019. Od. None of the above. Question 5 Target's inventory is accounted for using: O a.LIFO O b. Specific identification O c. FIFO O d. Average cost Question 6 Assuming increasing prices, the inventory cost flow assumption used by Target to value inventory: O a. results in the same amount of total assets on the balance sheet as average cost. O b.results in more total assets on the balance sheet than average cost. c. results in more total assets on the balance sheet than FIFO. O d.results in less total assets on the balance sheet than FIFO. Question 8 Assuming increasing prices, the inventory cost flow assumption used by Target to value inventory results in: a. the same amount of net income on the income statement as Fifo. Ob.more net income on the income statement than average cost. Oc less net income on the income statement than FIFO. O d. more net income on the income statement than FIFO. Question 9 The company's inventory is stated at the lower of weighted average cost or market. True False A Moving to another question will save this response. Question 10 1 points in the most recent reportin pered Based on Target's inventory turnover ratio (Cost of sales / Inventory) over the last two reporting periods. the company's inventory sold compared to the prior reporting period. (Round answers to two decimal place) O a. at the same rate Obat a quicker rate cat a slower rate FINANCIAL STATEMENTS Table of Contents Index to Financy Statements Consolidated Statements of Operations (millions, except per share data) 2019 2018 2017 Sales $ 77,130 $ 74,433 $ 71,786 Other revenue 982 923 928 Total revenue 78,112 75,356 72,714 Cost of sales 54,864 53,299 51,125 Selling, general and administrative expenses 16,233 15,723 15,140 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,357 2,224 2,225 Operating income 4,658 4,110 4,224 Net interest expense 477 461 653 Net other (income) / expense (9) (27) (59) Earnings from continuing operations before income taxes 4,190 3,676 3,630 Provision for income taxes 921 746 722 Net earnings from continuing operations 3,269 2,930 2,908 12 Discontinued operations, net of tax 7 6 Net earnings $ 3.281 $ 2,937 $ 2.914 Basic earnings per share $ 6.39 $ 5.54 $ Continuing operations 5.32 0.02 0.01 0.01 Discontinued operations $ 6.42 $ 5.55 $ 5.32 Net earnings per share Diluted earnings per share $ 6.34 $ 5.50 $ 5.29 Continuing operations 0.02 0.01 0.01 Discontinued operations $ 6.36 $ 5.51 $ 5.29 Net earnings per share Weighted average common shares outstanding 510.9 528.6 546.8 Basic 515,6 5332 550.3 Diluted Antidilutive shares Note: Per share amounts may not foot due to rounding See accompanying Notes to consolidated. Einancial Statements Consolidated Statements of Financial Position February 1, February 2, (millions, except footnotes) 2020 2019 Assets Cash and cash equivalents 2,577 $ 1,556 Inventory 8,992 9,497 Other current assets 1,333 1,466 Total current assets 12,902 12,519 Property and equipment Land 6,036 6,064 Buildings and improvements 30,603 29,240 Fixtures and equipment 6,083 5,912 Computer hardware and software 2,692 2,544 Construction-in-progress 533 460 Accumulated depreciation (19,664) (18,687) Property and equipment, net 26,283 25,533 Operating lease assets 2.236 1,965 Other noncurrent assets 1,358 1,273 Total assets $ 42,779 $ 41,290 Liabilities and shareholders' investment Accounts payable $ 9,920 $ 9.761 Accrued and other current liabilities 4,406 4.201 Current portion of long-term debt and other borrowings 161 1,052 Total current liabilities 14,487 15,014 Long-term debt and other borrowings 11,338 10,223 Noncurrent operating lease liabilities 2.275 2,004 Deferred income taxes 1.122 972 Other noncurrent liabilities 1,724 1.780 Total noncurrent liabilities 16,459 14,979 Shareholders' investment Common stock 42 43 Additional paid-in capital 6,226 6,042 Retained earnings 6,433 6,017 Accumulated other comprehensive loss (868) (805) Total shareholders' investment 11.833 11,297 Total liabilities and shareholders' investment $ 42.779 $ 41,290 Common Stock Authorized 6,000,000,000 shares, 50.0833 par value, 504,198,962 shares issued and outstanding as of February 1, 2020: 517.761,600 shares issued and outstanding as of February 2, 2019 Preferred Stock Authorized 5,000,000 shares, 50.01 par value: no shares were issued or outstanding during any period presented 2,577 $ 1,556 Cash and cash equivalents) $ (a) We have access to these funds without any significant restrictions, taxes or penalties. As of February 1, 2020 and February 2, 2019, we reclassified book overdrafts of $209 million and $242 million, respectively, to Accounts Payable and $23 million and $25 million, respectively, to Accrued and Other Current Liabilities. 8. Inventory The vast majority of our inventory is accounted for under the retail inventory accounting method (RIM) using the last-in, first-out (LIFO) method. Inventory is stated at the lower of LIFO cost or market. Inventory cost includes the amount we pay to our suppliers to acquire inventory, freight costs incurred to deliver product to our distribution centers and stores, and import costs, reduced by vendor income and cash discounts. Distribution center operating costs, including compensation and benefits, are expensed in the period incurred. Inventory is also reduced for estimated losses related to shrink and markdowns. The LIFO provision is calculated based on inventory levels, markup rates, and internally measured retail price indices. Under RIM, inventory cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the inventory retail value. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market because permanent markdowns are taken as a reduction of the retail value of inventory. 9. Other Current Assets Other Current Assets (millions) Income tax and other receivables Vendor income receivable Prepaid expenses Other Total February 1. 2020 498 $ 464 154 217 1,333 $ February 2 2019 632 468 157 209 1,466 $