https://gtc.blackboard.com/bbcswebdav/pid-3988793-dt-content-rid-11422102_2/courses/ODA_101-114_V1/Target%202017%20Annual%20Report.pdf

Balance Sheet

Targets Balance Sheet (Consolidated Statements of Financial Position) is found on the page labeled pate 37 in the annual report (page 42 of the pdf).

What were the companys total assets at February 3^rd, 2018? At January 28^th, 2017? Did total assets increase or decrease from 1/28/17 to 2/3/18?

How much cash (including cash equivalents) did Target Corporation have on February 3^rd, 2018?

What was Targets largest current asset and largest current liability as of February 3, 2018?

Calculate Targets current ratio as of February 3^rd, 2018 and January 28^th, 2017. Did the current ratio improve, worsen, or hold steady from fiscal 2016 to fiscal 2017? Comment on Targets current ratio.

Write the companys accounting equation at February 3^rd 2018 by filling in the dollar amounts

Assets = Liabilities + Equity Note: Equity is called shareholders investment in this annual report

Calculate the debt ratio for Target Corporation as of February 3, 2018.

Kohls Corporation had a debt ratio of 59.3% as of February 3^rd, 2018. How did the debt ratio for Target compare to the debt ratio for Kohls? Is it higher, lower, or about the same? Which company had more debt as a % of total assets? Explain your answer.

Income Statement

Targets Income Statement (Called Consolidated Statements of Operations) is found on the page labeled pate 35 in the annual report (page 40 of the pdf).

What were total sales (revenues) for the year ended February 3^rd, 2018 and the year ending January 28^th, 2017? How much did total revenue increase or decrease from 1/28/17 to 2/3/18?

What was the amount of Targets cost of goods sold (cost of sales) for the year ended February 3, 2018, and the year ending January 28^th, 2017?

What was Targets gross profit and the gross profit percentage (gross margin rate) for the year ended February 3, 2018, and the year ending January 28^th, 2017. Did the gross profit percentage improve, decline, or hold steady? Management discussed changes in the gross profit percentage (gross margin) rate on page 19 of the annual report (page 24 of the pdf). To what does management attribute the change in gross margin rate?

How much net income (net earnings) did Target earn in fiscal 2017? Based on net income, was fiscal 2017 better or worse than fiscal 2016?

Transactions

Target uses automation to record transactions at the checkout counter based on a perpetual inventory system. Their system records transactions using the same basic accounting as in our text. Create the journal entries to record a cash sale of a sweater for $20.00 (ignore sales tax) where the cost of the sweater to Target was $12.00. Include explanations.