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Week 3 -Graded Homework. Analysis and Interpretation of Liquidity and Solvency Refer to the financial information for Target Corporation (TGT), presented below to answer the
Week 3 -Graded Homework.
Analysis and Interpretation of Liquidity and Solvency Refer to the financial information for Target Corporation (TGT), presented below to answer the following.
Assets | ||
Cash and cash equivalents | $1,794 | $2,712 |
Accounts receivable, net | 7,927 | 8,153 |
Inventory | 7,918 | 7,596 |
Other current assets | 1,810 | 1,752 |
Total current assets | 19,449 | 20,213 |
Property and equipment, net | 27,149 | 23,493 |
Other noncurrent assets | 1,032 | 999 |
Total assets | $47,630 | $44,705 |
Liabilities and shareholders' investment | ||
Accounts payable | $6,857 | $6,625 |
Accrued liabilities | 3,644 | 3,326 |
Current portion of long-term debt and notes payable | 3,786 | 119 |
Total current liabilities | 14,287 | 10,070 |
Long-term debt | 16,697 | 14,607 |
Deferred income taxes | 1,191 | 934 |
Other noncurrent liabilities | 1,634 | 1,607 |
Total shareholders' investment | 13,821 | 17,487 |
Total liabilities and shareholders' investment | $47,630 | $44,705 |
Sales | $69,766 |
Net credit card revenues | 1,399 |
Total revenues | 71,165 |
Cost of sales | 47,860 |
Selling, general and administrative expenses | 14,106 |
Credit card expenses | 446 |
Depreciation and amortization | 2,131 |
Earnings before interest expense and income taxes | 6,622 |
Net interest expense | 866 |
Earnings before income taxes | 5,756 |
Provision for income taxes | 1,527 |
Net earnings | $4,229 |
a. Compute Target's current ratio and quick ratio for 2012 and 2011. (Round your answers to one decimal place.) 2012 Current Ratio Answer
0.00 points out of 1.00 2011 Current Ratio Answer 0.00 points out of 1.00 2012 Quick Ratio Answer 0.00 points out of 1.00 2011 Quick Ratio Answer 0.00 points out of 1.00 b. Compute Target's times interest earned for the year ended January 28, 2012, and its debt-to-equity ratios for 2012 and 2011. Interest income for this year was $3 million, so interest expense was $869 million. (Round your answers to one decimal place.) 2012 Times Interest Earned Answer 0.00 points out of 1.00 2012 Debt-to-Equity Ratio Answer 0.00 points out of 1.00 2011 Debt-to-Equity Ratio Answer 0.00 points out of 1.00
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