ing questions. \begin{tabular}{lll} Cash \& cash equivalents & 784 & 695 \\ Inventory & 7,903 & 8,766 \\ Accounts receivables & 6,857 & 1,347 \\ Other current assets & 844 & 765 \\ \cline { 2 - 3 } Total current assets & 16,388 & 11,573 \\ Property \& equipment, net & 30,653 & 31,378 \\ Other noncurrent assets & 1,122 & 1,602 \\ \cline { 2 - 3 } Total assets & 48,163 & 44,553 \end{tabular} \begin{tabular}{lll} Accounts payable & 7,056 & 7,683 \\ Accrued \& other current liabilities & 3,981 & 3,934 \\ Short-term debt & 2,994 & 1,160 \\ \cline { 2 - 3 } Total current liabilities & 14,031 & 12,777 \\ Long-term debt & 14,648 & 11,678 \\ Other non-current liabilities & 2,930 & 3,867 \\ \cline { 2 - 3 } Total liabilities & 31,609 & 28,322 \\ Common stock \& paid-in capital & 3,399 & 3,632 \\ Retained earnings & 13,155 & 12,599 \\ \cline { 2 - 3 } Total owner's equity & 16,554 & 16,231 \\ \cline { 2 - 3 } Total liabilities and owner's equity & 48,163 & 44,533 \\ \hline \end{tabular} In the early 2000s, Canada had four department store chains: The Hudson's Bay Company, Sears, Zellers, and Walmart. Zellers was a discount department retailer founded in 1931. It reached its peak in the 1990s with 350 stores. Its inability to compete with Walmart led to its slow demise during the 2000s. In 2011, Target Corp. purchased most of Zeller's leases (135) for $1.636 billion. In 2013, in an aggressive expansion into Canada, Target opened 124 stores in the locations previously occupied by Zellers. The first year of operations was not good, with weak sales, empty shelves and complaints from customers that product selection and prices did not match US stores. This was due to issues like labelling laws (all Canadian labels must be bilingual), product packaging laws (packaging weight and sizes are regulated), and Canadian import tariffs. For example, men's clothing imported to Canada is subject to a 13% tariff. These laws and regulations forced Target to source its products through different (more expensive) Canadian suppliers and required it to set up three Canadian distribution centers. At the end of fiscal 2013, Target reported EBIT of $941M on sales of $1,317M. In November of 2014, speculation rose that Target might withdraw from Canada. Based on those rumours, Target's stock price rose from $60 in late October to $75 by mid-December. On January 15, 2015, Target announced it would close all of its Canadian stores. What happened to Target's ROE in 2013 compared to 2012 ? increased stayed the same decreased Using the DuPont ratios, what is the biggest cause of the change in ROE from 2012 to 2013? change in total asset turnover change in stock price change in leverage change in profit margin change in ROA In 2013, what is Target's biggest asset? fleet of trucks accounts receivable stores human resources inventory Between 2011 and 2013 , which activity ration best reflects the failure of the Canadian expansion? fixed asset (PP\&E) and inventory turnover total asset turnover fixed asset (PP\&E) turnover inventory turnover receivables turnover What is the change in the gross profit margin from 2012 to 2013? +1.5% 0.5% 1.5% +1.0% 1.0% The reason for the change in the gross profit margin (in 2013) is the cost of stocking the new stores the higher cost of items purchased from Canadian suppliers the cost of the new distribution system in Canada the lower prices charged at the Canadian stores Why does the accounts receivable turnover ration change from 2012 to 2013? more efficient point-of-sales systems in new stores the sale of the credit card business the large number of new store openings the decline in sales from 2012 to 2013 ing questions. \begin{tabular}{lll} Cash \& cash equivalents & 784 & 695 \\ Inventory & 7,903 & 8,766 \\ Accounts receivables & 6,857 & 1,347 \\ Other current assets & 844 & 765 \\ \cline { 2 - 3 } Total current assets & 16,388 & 11,573 \\ Property \& equipment, net & 30,653 & 31,378 \\ Other noncurrent assets & 1,122 & 1,602 \\ \cline { 2 - 3 } Total assets & 48,163 & 44,553 \end{tabular} \begin{tabular}{lll} Accounts payable & 7,056 & 7,683 \\ Accrued \& other current liabilities & 3,981 & 3,934 \\ Short-term debt & 2,994 & 1,160 \\ \cline { 2 - 3 } Total current liabilities & 14,031 & 12,777 \\ Long-term debt & 14,648 & 11,678 \\ Other non-current liabilities & 2,930 & 3,867 \\ \cline { 2 - 3 } Total liabilities & 31,609 & 28,322 \\ Common stock \& paid-in capital & 3,399 & 3,632 \\ Retained earnings & 13,155 & 12,599 \\ \cline { 2 - 3 } Total owner's equity & 16,554 & 16,231 \\ \cline { 2 - 3 } Total liabilities and owner's equity & 48,163 & 44,533 \\ \hline \end{tabular} In the early 2000s, Canada had four department store chains: The Hudson's Bay Company, Sears, Zellers, and Walmart. Zellers was a discount department retailer founded in 1931. It reached its peak in the 1990s with 350 stores. Its inability to compete with Walmart led to its slow demise during the 2000s. In 2011, Target Corp. purchased most of Zeller's leases (135) for $1.636 billion. In 2013, in an aggressive expansion into Canada, Target opened 124 stores in the locations previously occupied by Zellers. The first year of operations was not good, with weak sales, empty shelves and complaints from customers that product selection and prices did not match US stores. This was due to issues like labelling laws (all Canadian labels must be bilingual), product packaging laws (packaging weight and sizes are regulated), and Canadian import tariffs. For example, men's clothing imported to Canada is subject to a 13% tariff. These laws and regulations forced Target to source its products through different (more expensive) Canadian suppliers and required it to set up three Canadian distribution centers. At the end of fiscal 2013, Target reported EBIT of $941M on sales of $1,317M. In November of 2014, speculation rose that Target might withdraw from Canada. Based on those rumours, Target's stock price rose from $60 in late October to $75 by mid-December. On January 15, 2015, Target announced it would close all of its Canadian stores. What happened to Target's ROE in 2013 compared to 2012 ? increased stayed the same decreased Using the DuPont ratios, what is the biggest cause of the change in ROE from 2012 to 2013? change in total asset turnover change in stock price change in leverage change in profit margin change in ROA In 2013, what is Target's biggest asset? fleet of trucks accounts receivable stores human resources inventory Between 2011 and 2013 , which activity ration best reflects the failure of the Canadian expansion? fixed asset (PP\&E) and inventory turnover total asset turnover fixed asset (PP\&E) turnover inventory turnover receivables turnover What is the change in the gross profit margin from 2012 to 2013? +1.5% 0.5% 1.5% +1.0% 1.0% The reason for the change in the gross profit margin (in 2013) is the cost of stocking the new stores the higher cost of items purchased from Canadian suppliers the cost of the new distribution system in Canada the lower prices charged at the Canadian stores Why does the accounts receivable turnover ration change from 2012 to 2013? more efficient point-of-sales systems in new stores the sale of the credit card business the large number of new store openings the decline in sales from 2012 to 2013