Target Corporation (Target) operates large general merchandise and food discount stores in all of the United States, with the exception of Alaska, Hawaii, and Vermont. T he company also has its own credit card operations and operates a fully integrated online business, Target.com. Although the online portion of Target's business is small relative to the overall size of Target, sales are growing at a more rapid pace in the online business compared to the in-store sales. T he company's philosophy is to offer their customers a delightful shopping experience and their team members a preferred place to work, and to invest in the communities in which Target conducts business to improve quality of life.

Required

1. Analyze the firm's financial statements and supplementary information. Your analysis should include the preparation of common-size financial statements, key financial ratios, and an evaluation of short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, and market measures. (The financial statement analysis template can be accessed and used at www.prenhall.com/fraser.)

2. Identify the strengths and weaknesses of the company.

3. What is y our opinion of the investment potential and the creditworthiness of Target Corporation?