Vertical Analysis - Income Statement Target Corporation INSTRUCTIONS: Change XX to the year of the report you are analyzing. You may have to insert additional rows based on the actual Target Consolidated statement. Sales Cost of sales FY 2021 $106,005 % FY 2020 % 100.00% 93,561 100.0% 74,963 66,177 Gross margin $ 31,042 $27,384 Selling, general, and administrative expenses 19,752 18,615 Depreciation and amortization 2,344 2,230 Gain on sale Earnings from continuing operations before interest and taxes $ 8,946 $ 6,539 Net interest expense 421 977 Net other (income)/expense $ (382) $ 16 Earnings from continuing operations before income taxes $ 8,907 $ 5,546 Provision for income taxes $ 1,961 $ 1,178 Net earnings from continuing operations Discontinued operations, net of tax Net earnings/(loss) $ 6,946 $ 4,368 $ $ $ 6,946 $ 4,368 Vertical Analysis - Balance Sheets Target Corporation INSTRUCTIONS: Change XX to the year of the report you are analyzing. You may have to insert additional rows based on the actual Target Consolidated statement. ASSETS Cash and cash equivalents Inventory Assets of discontinued operations Other current assets Total current assets Property and equipment Land Buildings and equipment Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Noncurrent assets of discontinued operations Other noncurrent assets Total assets LIABILITIES Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations FY 2021 Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent liabilities of discontinued operations Other noncurrent liabilities Total noncurrent liabilities Total liabilities | - $ $ do % FY 2020 % - $ 100.00% $ 100.00% eses $ $ $ es es $ $ SHAREHOLDERS' INVESTMENT Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' investment $ $ Total liabilities and shareholders' investment $ 100.00% $ 100.00% INSTRUCTIONS: Change XX to the year of the report you are analyzing. Total Revenue Cost of sales Selling, general, and administrative expenses Depreciation and amortization Operating Income Net other (income)/ expense Horizontal Analysis of the Income Statements Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings/(loss) H Target Corporation FY 2021 FY 2020 $ $ Change % Change #DIV/O! FY 2019 $ Change % Change $ #DIV/O! $ #DIV/0! $ #DIV/01 $ #DIV/O! $ #DIV/O! S #DIV/01 $ #DIV/O! $ #DIV/O! $ #DIV/O! $ 0.00% $ 0.00% $ #DIV/01 $ #DIV/O! $ $ $ #DIV/O! $ $ #DIV/O! $ #DIV/0! $ #DIV/O! $ - $ $ #DIV/0! $ $ #DIV/O! S #DIV/O! $ #DIV/O! $ $ $ #DIV/01 $ $ #DIV/O! 1 2 3 INSTRUCTIONS: Change XX to the year of the report you are analyzing. 4 ASSETS Cash and cash equivalents 6Inventory 7 Assets of discontinued operations 8 Other current assets Total current assets Property and equipment Horizontal Analysis of the Balance Sheets Target Corporation FY 2021 FY 2020 $ Change % Change FY 2019 $ Change % Change $ $ #DIV/O! #DIV/O! $ $ 2,577 $ (2,577) -100.00% 8,992 $ (8,992) -100.00% $ 0.00% $ $ $ #DIV/O! $ 1,333 $ $ $ $ #DIV/O! $ 12,902 $ 0.00% (1,333) -100.00% (12,902) -100.00% 1 Land 2 Buildings and equipment 3 Fixtures and equipment 4 5 $ #DIV/O! $ 6,036 $ (6,036) -100.00% $ #DIV/O! $ 30,603 $ (30,603) -100.00% $ #DIV/O! $ 6,083 $ (6,083) -100.00% Computer hardware and software Construction-in-progress 6 Accumulated depreciation 7 Property and equipment, net 8 Noncurrent assets of discontinued operations 9 Operating Lease Assets 20 Other noncurrent assets #DIV/0! $ 2,692 $ (2,692) -100.00% #DIV/O! $ 533 $ (533) -100.00% $ #DIV/0! $ (19,664) $ $ $ $ #DIV/0! $ $ 0.00% $ 26,283 $ $ 19,664 -100.00% (26,283) -100.00% 0.00% $ 0.00% $ 2,236 $ 0.00% $ - #DIV/O! $ 1,358 $ (1,358) -100.00% 21 Total assets $ $ $ - #DIV/O! $ 42,779 $ (42,779) -100.00% 2 LIABILITIES 3 Accounts payable 24 Accrued and other current liabilities 5 Current portion of long-term debt and other borrowings $ #DIV/O! $ 9,920 $ (9,920) -100.00% $ #DIV/O! $ 4,406 $ (4,406) -100.00% #DIV/O! $ 161 $ (161) -100.00% 7 Total current liabilities 6 Liabilities of discontinued operations 8 Long-term debt and other borrowings 9 Noncurrent operating lease liabilities 0.00% $ $ - #DIV/O! $ $ $ #DIV/O! $ 14,487 $ (14,487) -100.00% - #DIV/O! $ 11,338 0.00% 0.00% $ 2,275 0.00% 0 Deferred income taxes 1 Noncurrent liabilities of discontinued operations $ #DIV/O! $ 1,122 0.00% $ 0.00% $ 0.00% 2 Other noncurrent liabilities $ - #DIV/O! $ 1,724 0.00% 3 Total noncurrent liabilities 4 Total liabilities 5 SHAREHOLDERS' INVESTMENT 6 Common stock 7 Additional paid-in capital 8 Retained earnings 9 Accumulated other comprehensive loss 40 Total shareholders' investment $ $ $ #DIV/O! $ 16,459 $ (16,459) -100.00% $ $ $ - #DIV/O! $ 30,946 $ (30,946) -100.00% $ #DIV/O! $ $ #DIV/O! $ 42 $ 6,226 $ (42) -100.00% $ #DIV/O! $ 6,433 $ (6,226) -100.00% (6,433) -100.00% $ - #DIV/O! (868) $ 868 0.00% $ $ $ - #DIV/O! $ 11,833 $ (11,833) -100.00% 1 Total liabilities and shareholders' investment $ $ $ - #DIV/O! $ 42,779 $ (42,779) -100.00% 12 13 Ratio Analysis Target Corporation INSTRUCTIONS: Change XX to the year of the report you are analyzing. FY 2021 LIQUIDITY Working capital Formula current assets - current liabilities 7 Calculation Current ratio Formula current assets / current liabilities 1 Quick ratio 2 3 4 Inventory turnover 5 6 Calculation Formula current assets - inventory / current liabilities Calculation Formula Cost of goods sold / average inventory Calculation 7 Average days to sell inventory Formula 365/ inventory turnover Calculation 8 9 0 SOLVENCY 1 Debt to assets 2 Formula Total liabilities / total assets 3 Calculation 4 Debt to equity 5 6 Formula total liabilities / total equity Calculation 7 Number of times interest is earned 8 9 Formula EBIT/Interest expense Calculation 0 Plant assets to long-term liabilities 1 2 3 Formula Net plant assets / Long-term liabilities (debt and borrowings) Calculation PROFITABILITY 4 Net margin (return on sales) 5 6 Formula Net income/net sales Calculation 7 Asset turnover 8 9 0 Return on investment Formula Net sales / average total assets Calculation Formula Net income/ average total assets 1 2 Calculation 3 Return on equity 4 5 6 7 Formula Net income/average total stockholders' equity Calculation 8 9 0 1 SECTION 1 - A SECTION 1-R SECTION 1-C | SECTION 1-D SECTION 2 - Ratio Analysis SECTION 3 - Budget FY 2020 Budgeting Target Corporation INSTRUCTIONS: Select the previous three years annual reports to complete the cells below. Change XX to the yea of the report you are analyzing. FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 % change 2016-2017 Sales Relevant expenses: Cost of sales Selling, general, and administrative expense O Depreciation and amortization Total relevant expenses #DIV/01 #DIV/O! #DIV/0! #DIV/01 $ $ $ $ $ #DIV/O! Budgeted and actual income statement accounts FY 2020-2021 B Sales #DIV/O! Actual 2020 verage % change 2015-201 Budget 2021 Actual 2021 $ #DIV/O! Difference #DIV/0! difference from budgeted amou #DIV/01 5 Relevant expenses: 5 Cost of sales $ #DIV/O! #DIV/O! #DIV/O! #DIV/O! 7 Selling, general, and adminstrative expense $ #DIV/O! #DIV/O! #DIV/O! #DIV/O! B Depreciation and amortization $ #DIV/O! #DIV/O! #DIV/O! #DIV/01 Total relevant expenses $ #DIV/O! #DIV/O! $ #DIV/O! #DIV/O! 1 2 B 6 change 2017-201% change 2018-201 % change 2019-2020 verage % change 2016-2020 #DIV/O! #DIV/O! #DIV/01 #DIV/O! #DIV/O! #DIV/O! #DIV/O! #DIV/O! #DIV/O! #DIV/O! #DIV/01 #DIV/O! #DIV/O! #DIV/O! #DIV/01 #DIV/01 #DIV/O! #DIV/O! #DIV/O! #DIV/O