Hello,

I need some help with the following Business Application Case Target. I want to make sure that my answers to the questions are correct. Would you please provide me with the step by step solutions and show me how you approach to the result. Please provide me with your calculations and use Targets 2017 Fiscal Year.

Thanks,

Use the Target Corporation Form 10-K to answer the following questions related to Targets 2017 Fiscal Year. Note that Targets Fiscal Year ends in late January or early February, so the 2017 Fiscal Year ends February 3, 2018. You will need to use the financial statements as well as notes to the financial statements to answer the questions. Show your calculations.

1. What percentage of Targets total revenues end up as net earnings? (Hint: use the Statement of Operations)
2. What percentage of Targets sales go to pay for the costs of the goods being sold? (Hint: use the Statement of Operations)
3. Calculate the Cost of Sales and the Gross Margin as a percentage of Targets Sales for the 2017, 2016 and 2015 Fiscal Years. Comment on the changes and the significance of changes in these ratios. (Hint: use the Statement of Operations)
4. What costs does Target include in its Cost of Sales account? (Hint: use the Notes to the Financial Statements starting on page 40 of the 10-K)
5. When does Target recognize revenue from the sale of gift cards? (Hint: use the Notes to the Financial Statements starting on page 40 of the 10-K)