The Business Application cases for chapters 3 through 8 are based on the Form 10-K for Target Corp. The cases allow you to apply the concepts from the text to a live case. The text Business Application cases reference the 2015 Fiscal Year reports, but we will use the more current 2018 Fiscal Year reports. You will find the complete 10-K report in a pdf file as well as an excel workbook with the financial statements posted on the Canvas course site for convenience. But I encourage you to locate them either through the SEC Edgar database (See Appendix A, Chapter 3 in the text), or by going to the Target Investor Relations web site.Use the Target Corporation Form 10-K to answer the following questions related to Targets

2018 Fiscal Year. Note that Targets Fiscal Year ends in late January or early February, so the 2018 Fiscal Year ends February 2, 2019. You will need to use the financial statements as well as notes to the financial statements to answer the questions. Show your calculations and extend all decimal points at least 2 places.

1. What percentage of Targets total revenues end up as net earnings for the most recent year? (Hint: use the Statement of Operations)

2. What percentage of Targets sales go to pay for the costs of the goods being sold? (Hint: use the Statement of Operations)

3. Calculate the Cost of Sales and the Gross Margin as a percentage of Targets Sales for the 2018, 2017 and 2016 Fiscal Years. Comment on the changes and the significance of changes in these ratios. (Hint: use the Statement of Operations)

4. What costs does Target include in its Cost of Sales account? (Hint: use the Notes to the Financial Statements starting on page 40 of the 10-K)

5. When does Target recognize revenue from the sale of gift cards? (Hint: use the Notes to the Financial Statements starting on page 40 of the 10-K)