Target Corporation

Selected Income Statment, Balance Sheet, and Related Data

Income Statment	2010	2009	2008
Sales	65,786,000	63,435,000,000	62,884,000,000
Less: Cost of Goods Sold	45,725,000,000	44,062,000,000	44,157,000,000
Gross Profit	20,061,000,000	19,373,000,000	18,727,000,000
Less: Selling, general, and admin expenses	13,469,000,000	13,078,000,000	12,954,000,000
Less: Other expenses	860,000,000	1,521,000,000	1,609,000,000
Earnings before interest and taxes (EBIT)	5,252,000,000	4,673,000,000	4,402,000,000
Less: Interest Expense	757,000,000	801,000,000	866,000,000
Earnings before taxes (EBT)	4,495,000,000	3,872,000,000	3,536,000,000
Less: Taxes	1,575,000,000	1,384,000,000	1,322,000,000
Net Income	2,920,000,000	2,488,000,000	2,214,000,000
Less: Common dividends paid	609,000,000	496,000,000	465,000,000
Dividends Per Share	0.92	0.67	0.62
Balance Sheet Data
Assets	2010	2009	2008
Cash & Marketable Securities	1,712,000,000	2,200,000,000	864,000,000
Receivables	6,153,000,000	6,966,000,000	8,084,000,000
Inventory	7,596,000,000	7,179,000,000	6,705,000,000
Other long term assets	1,752,000,000	2,079,000,000	1,835,000,000
Total current assets	17,213,000,000	18,424,000,000	17,488,000,000
Net fixed assets	25,493,000,000	25,280,000,000	25,756,000,000
Other long term assets	999,000,000	829,000,000	862,000,000
Total assets	43,705,000,000	44,533,000,000	44,106,000,000
Liabilities and Equity
Accounts payable	6,625,000,000	6,511,000,000	6,337,000,000
Accurals	3,326,000,000	3,120,000,000	2,913,000,000
Other current liabilities	119,000,000	1,696,000,000	1,262,000,000
Total current liabilities	10,070,000,000	11,327,000,000	10,512,000,000
Long term liabilities	18,148,000,000	17,859,000,000	19,882,000,000
Total Debt	28,218,000,000	29,186,000,000	30,394,000,000
Common Stock	59,000,000	62,000,000	63,000,000
Additional paid-in capital	3,311,000,000	2,919,000,000	2,762,000,000
Retained earnings	12,117,000,000	12,366,000,000	10,887,000,000
Total equity	15,487,000,000	15,347,000,000	13,712,000,000
Total debt and equity	43,705,000,000	44,533,000,000	44,106,000,000
Other Relevant Data
Common Shares Outstanding	704,038,218	744,644,454	752,712,464
Total Dividends Paid	609,000,000	496,000,000	465,000,000
Market Price Per Share	54.35	51.27	31.20

Given Targets financial data, answer the following questions: Using its available liquid resources, can target pay its current bills and other obligations that are expected to become due within the next 12 months? What performance and operational behaviors are increasing or decreasing targets liquidty? Are there any behaviors that should be investigated further?

Target Corporation Liquidty Ratios

1. Complete the current and quick ratios for 2008 through 2010 and evaluate the behavior of the ratios and the related accounts in Target's financial statements:

Current Ratios - 2010 __?__ 2009 __?__ 2008 __?__

Quick Ratios - 2010 __?__ 2009 __?__ 2008 __?__

2. Which of the following statements are correct? Check all that apply.

-The ratio data for Target indicate that over the period of 2008-2010, its current ratios have exhibited an increasing trend, while the trend for the quick ratios is decreasing.

- The ratio data for Target indicates tht over the period of 2008-2010, its current ratios have exhibited a decreasing trend, but the trend for quick ratios is increasing.

- Targets sales are consistently increasing, but its receivables are decreasing and its inventory balances are increasing.