Following you will find the income statements and balance sheets for Sears Holdings (SHLD) and Target Corp (TGT). Assume that you are a financial manager at Sears and want to compare your firm’s situation with Target. Calculate representative ratios for liquidity, asset management efficiency, financial leverage (capital structure), and profitability for both Sears and Target. How would you summarize the financial performance of Sears compared to Target (its benchmarkfirm)?

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Sears Holdings (SHLD) 31-Jan-09 Target Corp TGT) Period Ended 31-Jan-09 Total revenue Cost of revenue Gross profit Operating expenses Operating income or loss Interest expense Net income $46,770,000 64,948,000 44,157,000 $12,652,000 $20,791,000 16,389,000 302,000 4,402,000 894,000 53,000 2,214,000 34,118,000 12,050,000 272,000 Sears Holdings Target Corp (SHLD) (TGT) PERIOD ENDING Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Long-term investments Property, plant, and equipment Other assets Total assets 31-Jan-09 S 864,000 1,297,000 866,000 8,795,000 458,000 S17,488,000 $11,416,000 31-Jan-09 9,446,000 6,705,000 473,000 8,091,000 5,835,000 $44,106,000 $25,342,000 163,000 25,756,000 699,000 Liabilities Accounts payable Short-/current long-term debt Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Total liabilities Total stockholders' equity Total liabilities and owners' equity S 7,366,000 3,430,000 787,000 4,295,000 S10,512,000 8,512,000 2,132,000 12,904,000 13,830,000 $30,394,000 15,962,000 9,380,000 $44,106,000 $25,342,000 1,262,000 1,884,000 17,490,000 13,712,000