Week 3 -Graded Homework.

Compute ROA, Profit Margin, and Asset Turnover Refer to the financial information for Target Corporation, presented below:

Assets
Cash and cash equivalents	$794	$1,712
Accounts receivable, net	5,927	6,153
Inventory	7,918	7,596
Other current assets	1,810	1,752
Total current assets	16,449	17,213
Property and equipment, net	29,149	25,493
Other noncurrent assets	1,032	999
Total assets	$46,630	$43,705
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	13,697	15,607
Deferred income taxes	1,191	934
Other noncurrent liabilities	1,634	1,607
Total shareholders investment	15,821	15,487
Total liabilities and shareholders investment	$46,630	$43,705

Sales	$70,466
Net credit card revenues	1,399
Total revenues	71,865
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	7,322
Net interest expense	866
Earnings before income taxes	6,456
Provision for income taxes	1,527
Net earnings	$4,929

a. Compute its return on assets (ROA) for the fiscal year ending January 28, 2012. Interest income for this year was $3 million, so interest expense was $869 million. Assume a statutory tax rate of 35%. (Round your answers to one decimal place.) Return on Assets = Answer

0.00 points out of 1.00% b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). (Round your answers to one decimal place.) Profit Margin = Answer 0.00 points out of 1.00% Asset Turnover = Answer