You are an accountant at Hakes Inc. The Finance Manager, Paul Kraft, is thinking about the companys future and has asked you for your expert advice concerning an analysis of Hakes competitors debt positions.

Specifically, he has asked you to research and answer the following questions for two major competitors Target Corp. and Walmart Inc. Go to www.sec.gov and click on Company Filings Search and enter each competitors name and access the most recent annual report or 10-K for each one.

Questions to research and provide answers to Paul Kraft, in memo format.

1. What are the most significant types of current liabilities owed by each competitor?

2. Do the competitors have any significant amounts coming due in the next five years?

3. Compute and analyze the debt-to assets ratio and times interest earned ratio for each competitor and comment on which company, Target or Walmart, appears to be more solvent and why?