Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help Fall 2020 Session A Name Please answer the questions in the content of our class discussions (14 p.) 1. Assume that you and

please help image text in transcribed
image text in transcribed
Fall 2020 Session A Name Please answer the questions in the content of our class discussions (14 p.) 1. Assume that you and a friend are considering a few ideas for starting a new business Explain how you would use environmental scanning to determine which ideas might have a chance for success, ie what forces in the marketplace should be assessed. Make sure that your discussion Includes examples for each of the forces (10 pts.) 2. In the context of our class discussion, explain the overall objective of a financial manage in your response, be sure to include the three different approaches that can be utilized to achieve the hective 16 pts) Explain in financial terms the meaning of the size of the slice of pie versus the of the (12 pts.) 4. Explain the relationship between the accounting equation and making effective and efficient decisions Presented below are the income statements and balance sheets for Target Corporation for 2009 and 2018. Additional financial information is found below the financial statements Using this information calculate the financial metries found following the information Target Corporation Income Statement For Years Ended December 31 All numbers in milion 2019 575,400 5200 22.100 572,700 51.100 21.600 15.000 Sales Cost of goods sold Gross profit Operating expenses other than depreciation Earnings before interest, aves, and depreciation Depreciation Earnings before interest and taxes Interest expense Larings before taves Tax expense Earnings after 2.500 6700 2.500 4200 SOD 1700 SOO 1000 Tax rate in 2019 was 22% Tak rate in 2018 was 22% Target Corporation Balance Sheet December 31 All numbers are in mo $2.600 900 30.000 $1,400 LIDO 11.300 11.800 27.500 SIR ISOD 26.00 SAR Assets Current assets Cash Receivables Inventory Total currentes Property, plant, and equipment Total assets Debt and Stockholders' Equity Current de Acts payable Notes payable Accruals Total current debe Long term debit Total 59.800 1.200 4000 15.000 SB, 700 300 4,100 13 100 15.500 28.500 30.000 Target Corporation December 31 All numbers are in mod 2015 Assets Current assets Cash $1.00 Receivables 100 Inventory 10,400 Total current 13.900 Property, plant, and equipment 23.500 26.400 Total assets SER Debt and Stockholders' Equity Current debt Accts payable 5.300 Notes payable 300 Accruals Total current debt 35.000 12.100 Long term debet 15.000 15.500 Total delt 30.000 28.600 Stockholders' egity Capital stock 5.300 Treasury stock 800 Retained earnings Total stockholders' equity 12.300 11.700 Total debt and stockholders' equity SHER SARRERA Additional Information 1. Target Corporation has 500,000,000 shares of common stock outstanding. The market value per share is $150 2. Target Corporation's cost of money is ex Required All calculations need to be in context of figures provided above ps.)). Calculate the 2019 DuPont identity and discuss what the DuPont identity reveals 16 pts) b). Calculate the inventory holding period and the receivables holding period for 2019 and discuss what these two metries indicate - 16 pts) cl Calculate the current ratio and the quick ratio for 2015 and discuss what these ratios indicate 19 pts) dl. Calculate the free cash flow for 2018. What is the significance of free cash flow? 1 pts) el. Calculate MVA for 2018. Comment on the results 16 pts) . Calculate EVA for 2018. Comment on the results (4 pts) 2). Calculate the earnings per share for 2019. What does the earnings per share indicate? I pts). Calculate the price earnings (P/E) ratio for 2019. What does this financial metric indicate? ps) 4. Based on the calculations made above, the financial health of Target Corporation 12 pes) Explain the significance of TM metrics Fall 2020 Session A Name Please answer the questions in the content of our class discussions (14 p.) 1. Assume that you and a friend are considering a few ideas for starting a new business Explain how you would use environmental scanning to determine which ideas might have a chance for success, ie what forces in the marketplace should be assessed. Make sure that your discussion Includes examples for each of the forces (10 pts.) 2. In the context of our class discussion, explain the overall objective of a financial manage in your response, be sure to include the three different approaches that can be utilized to achieve the hective 16 pts) Explain in financial terms the meaning of the size of the slice of pie versus the of the (12 pts.) 4. Explain the relationship between the accounting equation and making effective and efficient decisions Presented below are the income statements and balance sheets for Target Corporation for 2009 and 2018. Additional financial information is found below the financial statements Using this information calculate the financial metries found following the information Target Corporation Income Statement For Years Ended December 31 All numbers in milion 2019 575,400 5200 22.100 572,700 51.100 21.600 15.000 Sales Cost of goods sold Gross profit Operating expenses other than depreciation Earnings before interest, aves, and depreciation Depreciation Earnings before interest and taxes Interest expense Larings before taves Tax expense Earnings after 2.500 6700 2.500 4200 SOD 1700 SOO 1000 Tax rate in 2019 was 22% Tak rate in 2018 was 22% Target Corporation Balance Sheet December 31 All numbers are in mo $2.600 900 30.000 $1,400 LIDO 11.300 11.800 27.500 SIR ISOD 26.00 SAR Assets Current assets Cash Receivables Inventory Total currentes Property, plant, and equipment Total assets Debt and Stockholders' Equity Current de Acts payable Notes payable Accruals Total current debe Long term debit Total 59.800 1.200 4000 15.000 SB, 700 300 4,100 13 100 15.500 28.500 30.000 Target Corporation December 31 All numbers are in mod 2015 Assets Current assets Cash $1.00 Receivables 100 Inventory 10,400 Total current 13.900 Property, plant, and equipment 23.500 26.400 Total assets SER Debt and Stockholders' Equity Current debt Accts payable 5.300 Notes payable 300 Accruals Total current debt 35.000 12.100 Long term debet 15.000 15.500 Total delt 30.000 28.600 Stockholders' egity Capital stock 5.300 Treasury stock 800 Retained earnings Total stockholders' equity 12.300 11.700 Total debt and stockholders' equity SHER SARRERA Additional Information 1. Target Corporation has 500,000,000 shares of common stock outstanding. The market value per share is $150 2. Target Corporation's cost of money is ex Required All calculations need to be in context of figures provided above ps.)). Calculate the 2019 DuPont identity and discuss what the DuPont identity reveals 16 pts) b). Calculate the inventory holding period and the receivables holding period for 2019 and discuss what these two metries indicate - 16 pts) cl Calculate the current ratio and the quick ratio for 2015 and discuss what these ratios indicate 19 pts) dl. Calculate the free cash flow for 2018. What is the significance of free cash flow? 1 pts) el. Calculate MVA for 2018. Comment on the results 16 pts) . Calculate EVA for 2018. Comment on the results (4 pts) 2). Calculate the earnings per share for 2019. What does the earnings per share indicate? I pts). Calculate the price earnings (P/E) ratio for 2019. What does this financial metric indicate? ps) 4. Based on the calculations made above, the financial health of Target Corporation 12 pes) Explain the significance of TM metrics

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Principles And Practice

Authors: Timothy J. Gallagher, Joseph D. Andrew

3rd Edition

0131768824, 978-0131768826

More Books

Students also viewed these Finance questions