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Obtain Target Corporation's annual report for its 2018 fiscal year (year ended February 2, 2019) at http://investors.target.com using the instructions in Appendix B, and use it to answer the following questions: a. What was Target's inventory turnover ratio and average days to sell inventory for the fiscal year ended February 2, 2019 (2018) and 2017? b. Is the company's management of inventory getting better or worse? c. What cost flow method(s) did Target use to account for inventory? Adjustments to reconcile net earnings to cash provided by operations: Earnings from discontinued operations, et of tax Appendix B 709 (miltions) Operating activities 2017 2016 2018 As Adjusted As Adjustedo Net earnings $2,937 $2.914 $2.734 Net earnings from continuing operations 6. 68 2,930 2.908 2,666 Depreciation and amortization Share based compensation expense 2,474 2476 2.318 132 Deferred income taxes Loss on debt extinguishment Noncash losses/(gains) and other, net 112 113 322 (188) 40 123 422 95 208 (11) Changes in operating accounts: Inventory (900) (348) 293 Other assets (299) (156) 56 Accounts payable 1,127 1,307 (166) Accrued and other liabilities 89 419 (394) Cash provided by operating activities-continuing operations 5,970 6,861 5,337 Cash provided by operating activities-discontinued operations 74 107 Cash provided by operations 5,973 6,935 5,444 Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment (3,516) (2,533) (1,547) 85 31 46 Cash paid for acquisitions, net of cash assumed (518) Other investments 15 (55) 28 Cash required for investing activities (3,416) (3.075) (1,473) Financing activities Additions to long-term debt 739 1,977 Reductions of long-term debt (281) (2,192) (2,649) (1,338) (1,348) (3,706) Dividends paid (1,335) Repurchase of stock (2.124) (1,046) 96 108 221 Stock option exercises (3,644) (3,729) (5,505) Cash required for financing activities (1.087) 131 (1,534) Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of period 2,643 2,512 4,046 $ 1,556 $2,643 $2,512 Cash and cash equivalents at end of period Supplemental information $ 476 $ 678 $ 999 Interest paid, net of capitalized interest 373 934 1,514 Income taxes paid 130 139 252 Leased assets obtained in exchange for new finance lease liabilities 246 212 148 Leased assets obtained in exchange for new operating lease liabilities See accomparnying Notes to Consolidated Financial Statements Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition. leases, and pensions. February 3,20 As Adjusteds 708 Appendix B February 2, 2019 Consolidated Statements of Financial Position $ 2,643 $ 1,556 8,597 (millions, except footnotes) 9,497 Assets 1,300 1,466 Cash and cash equivalents 12,540 12,519 Inventory Other current assets 6,095 Total current assets 6,064 28131 Property and equipment 29,240 5,623 Land 5,912 Buldings and improvements Fixtures and equipment 2,645 2,544 440 460 Computer hardware and software (18,398) (18,687) Construction-in-progress Accumulated depreciation Property and equipment, net 24,536 25,533 1,965 1,884 Operating lease assets 1,273 1,343 Other noncurrent assets $41,290 $40,303 Total assets Liabilities and shareholders' investment $ 9,761 $ 8,677 Accounts payable 4,201 4,094 Accrued and other current liabilities Current portion of long-term debt and other borrowings 1,052 281 Total current liabilities 15,014 13,052 Long-term debt and other borrowings Noncurrent operating lease liabilities 10,223 11,117 2,004 1,924 Deferred income taxes 972 693 Other noncurrent liabilities 1,780 1,866 Total noncurrent liabilities 14,979 15,600 Shareholders' investment Common stock Additional paid-in capital 43 45 Retained earnings 6,042 5,858 Accumulated other comprehensive loss 6,017 6,495 Total shareholders' investment (805) (747) Total liabilities and shareholders' investment 11,297 11,651 Common Stock Authorized 6,000,000,000 shares, $0.0833 par value: 517761,600 shares issued and outstanding at February 2. 2019: 541.681,670 shares 1550 $41,290 $40,303 See accompanying Notes to Consolidated Financial Statements. Refer to Note 2 regarding the adoption of new accounting standards for revenue recognition, leases, and pensions outstanding at February 3, 2018. Preferred Stock Authorized 5,000.000 shares, $0.01 par value; no shares were issued or outstanding at February 2, 2019 or February 3, 2018. Selling general and administrative expenses Consolidated Statements of Operations Appondix 707 (millions, except per share datai 2017 2016 Sales 2018 As Adjusted As Adjusted $74,433 $71.786 $69,414 Other revenue 923 928 857 Total revenue 75.356 72.714 70.271 Cost of sales 53.299 51.125 49,145 enveciation and amortization (exclusive of depreciation included in cost of sales) 15,723 15.140 14.217 2.224 2.225 2045 Operating income Net interest expense Net other (income)/expense Earnings from continuing operations before income taxes 4310 4,224 4,864 461 653 991 (27) (59) (88) 3,676 3.630 3,961 Provision for income taxes Net earnings from continuing operations 746 722 1295 2,930 2,908 2.666 Discontinued operations, net of tax 6 68 Net earnings Basic earnings per share $ 2,937 $ 2.914 $2.734 Continuing operations $ 5.54 $ 5.32 $ 461 Discontinued operations 0.01 0.01 012 Net earnings per share $ 5.55 $ 5.32 $ 4.73 Diluted earnings per share Continuing operations $ 550 $ 5.29 $ 4.58 Discontinued operationns 0.01 0.01 0.12 Net earnings per share 5.51 $ 5.29 $ 4.69 Weighted average common shares outstanding Basic 528.6 546.8 5776 Diluted 533,2 550.3 582.5 Antidilutive sheres 4.1 01 Note. Per share mounts may not toot due to rcundi a Ser Accomburiying Notes to Consolidated Finncial Steteme ts Rder to Not 2 regarding the adraticn of new accounting sarukards fo revenue ecog" tieri. le, and pensions Consolidated Statements of Comprehensive Income 2017 2016 As. Adjusted $ 2.914 2018 As Adjusted imillons) Net earnings $2,937 $2734 Other comprehensive (loss)income, net of tax (13) (52) Pension and other benetit liabilitles, net of tax (6) Currency translation adjustment and cash flow hedges, net of tax Other comprehensive (loss)/income Comprehensive income (58) (9) $2,879 $2.922 $2,725 Sue accompanying Notes to Consolidated Fina ncial Statements. Rofer to Note 2 regarding the adoption of new account ng stancarcis for revenue recegri fon leases anc pensicns.