uigels 2018 Fiscal Year. Note that Target's 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. a) What percentage of Target's total revenues end up as net earnings for the most recent year? (Hint: use the Statement of Operations) b) What percentage of Target's sales go to pay for the costs of the goods being sold? (Hint: use the Statement of Operations) c) Calculate the Cost of Sales and the Gross Margin as a percentage of Target's 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) d) 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) Business Application Cases Target he 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 l 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. Chapter 3 Assignment (Adapted from ATC 3-1 in Text) Use the Target Corporation Form 10-K to answer the following questions related to Target's 2018 Fiscal Year. Note that Target's 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 a) What percentage of Target's total revenues end up as net earnings for the most recent year? (Hint: use the Statement of Operations) 12 Months Ended Consolidated Statements of Operations - Feb. 03, 2018 $72,714 lan. 28, 2017 $70,271 49,145 Feb. 02,2019 $ 75,356 53,299 USD (S) shares in Millions, $ in Millions Total revenue 51,125 Cost of sales 21,126 21,589 22,057 Gross Margin 14,217 15,140 2,225 4,224 15,723 Selling, general and administrative Depreciation and amortization (exclusive 2,045 2,224 4,864 4,110 Operating income 653 991 461 Net interest expense (88) 3,961 (59) (27) 3,676 Net other (income)/expense Earnings from continuing operations 3,630 722 1,295 746 Provision for income taxes 2,666 2,908 2,930 Net earnings from continuing operations Discontinued operations, net of tax Net earnings 68 6 $ 2,734 $ 2,914 $ 2,937 uigels 2018 Fiscal Year. Note that Target's 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. a) What percentage of Target's total revenues end up as net earnings for the most recent year? (Hint: use the Statement of Operations) b) What percentage of Target's sales go to pay for the costs of the goods being sold? (Hint: use the Statement of Operations) c) Calculate the Cost of Sales and the Gross Margin as a percentage of Target's 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) d) 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) Business Application Cases Target he 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 l 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. Chapter 3 Assignment (Adapted from ATC 3-1 in Text) Use the Target Corporation Form 10-K to answer the following questions related to Target's 2018 Fiscal Year. Note that Target's 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 a) What percentage of Target's total revenues end up as net earnings for the most recent year? (Hint: use the Statement of Operations) 12 Months Ended Consolidated Statements of Operations - Feb. 03, 2018 $72,714 lan. 28, 2017 $70,271 49,145 Feb. 02,2019 $ 75,356 53,299 USD (S) shares in Millions, $ in Millions Total revenue 51,125 Cost of sales 21,126 21,589 22,057 Gross Margin 14,217 15,140 2,225 4,224 15,723 Selling, general and administrative Depreciation and amortization (exclusive 2,045 2,224 4,864 4,110 Operating income 653 991 461 Net interest expense (88) 3,961 (59) (27) 3,676 Net other (income)/expense Earnings from continuing operations 3,630 722 1,295 746 Provision for income taxes 2,666 2,908 2,930 Net earnings from continuing operations Discontinued operations, net of tax Net earnings 68 6 $ 2,734 $ 2,914 $ 2,937