QUES'I'IDM 9 Net to rnplete Peinis eut ef 1 ELEM] 1? Flag questien Analysis and Interpretatien pf Pretatiilityr Balance sheets and inceme statements fer Target Cerppratipn fellp'uv. lnteme Statement Fer Fbtal 'I'iears Ended {5 milliensl IDDE EDD!- sum Sales $ 51 Iii-'1 $ 451652 $ 413325 Credit card revenues 14349 1115? LEE? Tetal revenues 52. Eli] 451339 423025 Cest at sales 34192? ELI-1.45 231359 Selling general and administrative expenses 111155 St??? 3155? Credit card expenses "iii-'6 T3? TEE Depreciatipn and amprtisatipn L409 14259 LUBE Earnings hefere interest and inteme taxes 41323 316m 3115? Net interest expense 4153 53m 5515 Earnings hefere inteme taxes 31360 31131 2.603 Previsiens fer inteme taxes L452 111445 954 Net earnings $ 21405 $ 11355 $ 1161? Hale nee Sheet {5 rnllllens, Ilept feetnetes} januargilr II, EDDIE januargilr 1!, EDD!- Assets Cash and cash equivalents $ 11645 $ 1245 Credit card receivables 5:666 5:069 Inventprv 51335 51354 Cither CIJ rrent assets 11253 11224 Tetal CU rrent assets MADE 131922 Il'I'u'El'ltDl'y' 5,1535 5,354 Other current aaaets 11253 14224 Tcital current assets 1111495 191922 Prbpertyand equipment Land L\"Mind-9 3139:1- Buildinga and imprcwemenis MAIN, 11.519 Fixturea and equipment 91219 2.999 Camp uter hardware and saftware 2.214 11995 Cdnstm cti dn-in-prdgress 11159 952 Accumulated depreciatidn {5.1315} {5.413} Prbpe rty a nd equipment. net 191939 1511959 Either nbncurrent aasets 1,552 1,51 1 Total aaaeiE $ 341995 $ 921293 Liabilitiea and aha rehdld era\" investment AccbuniE payable El 5269 Eli 5;??9 Accrued and bther current liabilides 2.56? 1193? Current pbrtipn df lbng-term debt and 11012195 payable 1'3 504 Total current liabilitiea 91559 91229 bangterm debt 91119 91934 Deferred in name taxes E51 9?9 Other nbn cu rrent liabilities 11232 1199? Shareh dldera' investment Cdmmdn attack: 1'9 1'4 Additidnal paidin-capital 2.121 111919 Retained earnings 11.919 11114.9 Accumulated bther cdmprehensive incdme [Id-55} [El [3} Total snarehdlderS' imeatm ent 1111295 131929 Additional paidin-capital 2.121 1,310 Retained earnings 12.013 11,148 Accumulated other comprehensive income {loss} (2) (3) Total shareholders' investment 14.205 13.029 Total liabilities and shareholders' equity $ 34,995 $ 32,293 a. Compute ROE for 2006. Do not round until your nal answer. Round answers to Mo decimal places. ROE = 9% b. Conrm that ROE equals ROE computed using the component measures for prot margin, asset turnover, and nancial leverage using: ROE = PM * AT * FL. Compute the components of ROE. Do not round until your nal answer. Round answers to two decimal places. PM = 96 AT = FL= c. Compute adjusted ROA. Assume a tax rate of: 38.3%. Do not round until your nal answer. Round your answer to two decimal places. Adjusted ROA = 96 Check
