Hi there, i need help with the ratios, drop down boxes, and the box questions answered.

Assume that you are a prospective shareholder 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. Note: Assume that there are 365 days in a year, and that Target's inventory turnover ratio is computed by dividing its net sales by its ending inventory balance. 2009 2008 Target Corporation Selected Income Statement, Balance Sheet, and Related Data: Income Statement 2010 Sales $65,786,000,000 Less: Cost of goods sold 45,725,000,000 Gross profit $20,061,000,000 Less: Selling, general, and administrative expenses 13,469,000,000 Less: Other expenses 860,000,000 Earnings before interest and taxes (EBIT) $5,732,000,000 Less: Interest expense 757,000,000 Earnings before taxes (EBT) $4,975,000,000 Less: Taxes 1,575,000,000 Net income $3,400,000,000 Less: Common dividends paid 609,000,000 Dividends per share $0.87 $63,435,000,000 44,062,000,000 $19,373,000,000 13,078,000,000 1,521,000,000 $4,774,000,000 801,000,000 $3,973,000,000 1,384,000,000 $2,589,000,000 496,000,000 $62,884,000,000 44,157,000,000 $18,727,000,000 12,954,000,000 1,609,000,000 $4,164,000,000 866,000,000 $3,298,000,000 1,322,000,000 $1,976,000,000 465,000,000 $0.67 $0.62 2010 2008 $1,712,000,000 6,153,000,000 7,596,000,000 1,752,000,000 17,213,000,000 25,493,000,000 999,000,000 $43,705,000,000 2009 $2,200,000,000 6,966,000,000 7,179,000,000 2,079,000,000 18,424,000,000 25,280,000,000 829,000,000 $44,533,000,000 $864,000,000 8,084,000,000 6,705,000,000 1,835,000,000 17,488,000,000 25,756,000,000 862,000,000 $44,106,000,000 Balance Sheet Data Assets: Cash and marketable securities Receivables Inventory Other current assets Total current assets Net fixed assets Other long-term assets Total assets Liabilities and Equity: Accounts payable Accruals Other current liabilities Total current liabilities Long-term liabilities Total debt Common stock Additional paid-in capital Retained earnings Total Equity Total debt and equity Other Relevant Data Common shares outstanding Total dividends paid Market price per share $6,625,000,000 $6,511,000,000 3,326,000,000 3,120,000,000 119,000,000 1,696,000,000 $10,070,000,000 $11,327,000,000 18,148,000,000 17,859,000,000 $28,218,000,000 $29,186,000,000 59,000,000 62,000,000 3,311,000,000 2,919,000,000 12,117,000,000 12,366,000,000 $15,487,000,000 $15,347,000,000 $43,705,000,000 $44,533,000,000 $6,337,000,000 2,913,000,000 1,262,000,000 $10,512,000,000 19,882,000,000 $30,394,000,000 63,000,000 2,762,000,000 10,887,000,000 $13,712,000,000 $44,106,000,000 744,644,454 704,038,218 $609,000,000 752,712,464 $465,000,000 $496,000,000 $51.27 $54.35 $31.20 Given Target's financial data, answer the following questions: Given its current and projected future sales, does Target hold a reasonable quantity of current and fixed assets? How well is it managing its fixed assets and all its assets? To answer these questions, compute the listed asset management, or efficiency, ratios for 2008 through 2010 and evaluate each ratio and the trend of its component account balances, 1. Which of the following statements addressing the use of asset management ratios, in general, and the inventory turnover and days sales outstanding (DSO) ratios, in particular, are correct? Check all that apply. The observed trend in Target's DSO ratio is consistent with either decreases in the firm's sales, increases in its Accounts receivable account balance, or both. In the absence of extraordinary events, the three-year trend of the inventory turnover ratio should be interpreted as unfavorable management performance. In general, asset management ratios are designed to report the number of dollars of sales generated per dollar of investment made in the company's receivables, inventory, plant and equipment, or total assets. The trend of Target's DSO ratio suggests that over time it is collecting its receivables more quickly. 2. Which of the following behaviors could explain the trend in the inventory turnover ratio and therefore merit additional investigation? Check all that apply. The firm expanded an existing product line or developed a new product line. One or more suppliers offered favorable prices for making bulk purchases. One or more suppliers offered favorable prices for making accelerated purchases. 3. Consider the trend of Target's DSO ratios, as well as the pattern of its Sales and Accounts receivable balances. (Note: Round all intermediate and final calculations to two decimal places.) Target Corporation Asset Management Ratios Inventory turnover ratio 2010 2009 2008 DSO 2010 days 2009 days 2008 days Fixed asset turnover ratio 2010 2009 2008 Total asset turnover ratio 2010 2009 2008 Improup/ Decrease If Target is making fewer credit sales because management is concerned about future economic conditions and preventing defaults and unrecoverable accounts receivable, then this finding could reflect favorably in your assessment of management's performance. 1/4 On the other hand, if credit sales are declining because sales associates in the company's stores are failing to encourage customers to open new Target credit cards, then this isn't a favorable behavior because the company may be opportunities for greater future sales and earned interest income. +/- 4. Which statement addressing Target's fixed asset turnover ratios or its component accounts is correct? Target's fixed asset turnover ratio should be computed using the total historical cost of its fixed assets, which means that the ratio should not reflect the accumulated depreciation, or age, of its fixed assets. The reason why the fixed asset turnover ratio increases from 2009 to 2010 is that the Sales account increases by 3.71%, while the Net fixed asset account increases by only 0.84%. In general, a higher, rather than a lower, fixed asset turnover ratio will reflect on management's performance. However, the practice of generating ever-greater sales dollars using the same stock of property, plant, and equipment can be taken to extreme. Which practice would increase a company's fixed asset turnover ratio to the detriment of the company's long-term viability and profitability? O A company doesn't replace worn-out plant and equipment and operates the remaining assets over additional work shifts. O A company cuts back on the downtime and maintenance and repair activities necessary to preserve the performance of the property and equipment. 5. The trend of the total asset turnover ratio indicates that Target is moderately successful in generating sales dollars using its entire holding of assets. In general, it earns $1.42 to $1.51 of for every dollar of assets owned. 6. Given these insights and information, which of the following statements are correct? Check all that apply. Without knowing the trend of the company's gross fixed assets, several possible explanations for the trend of the fixed asset turnover ratio could include the writing-off of old, no salvageable equipment or a switch from straight- line depreciation to some form of accelerated depreciation (which would increase the company's annual depreciation expense and affect its accumulated depreciation account). Possible explanations for inventories that accumulate faster than the firm's sales include holding obsolete, missing, or unsalable items, as well as bulk purchases made to capitalize on discounts from suppliers, and preparation for busy seasonal sales periods (such as back-to-school and the Christmas holiday). The trend of the DSO ratio merits additional investigation to determine why the company's receivables balances are declining over time. Between 2008 and 2010, Target reduced the delay associated with collecting its accounts receivable by approximately 12 days. This is a positive finding because it can lead to fewer uncollectible accounts. Target's increase in inventory holdings helps explain the trend in the company's liquidity ratios