Return to Target’s 2010 annual report. For instructions on how to access the report online, see the Continuing Financial Statement Analysis Problem in Chapter 2. On page 33 of the annual report you’ll find Target’s income statement for the year ending January 29, 2011 (called the Consolidated Statement of Operations). On page 34 you’ll find Target’s balance sheet as of January 29, 2011 (called the Consolidated Statement of Financial Position). Now answer the following questions:

1. Look at Target’s balance sheet. What long-term assets does Target own? How much has Target invested in each type of long-term assets as of January 29, 2011,and January 30, 2010?

2. Look over footnotes 13, 14, and 15 of the financial statements. These footnotes start on page 45 of the financial statements, found in Target’s 2010 annual report. Why does Target have tangible and intangible assets?

3. Look over footnotes 13 and 15 of the financial statements. These footnotes start on page 45 of the financial statements, found in Target’s 2010 annual report. How is Target depreciating its property and equipment and amortizing its intangible assets?

4. Look at Target’s balance sheet and income statement. What is Target’s return on assets (ROA) and fixed asset turnover for the year ending January 29, 2011? What do these ratios tell you?

5. Looking back over your answers to question 1 through 4, how do you think Target is performing? What do you think of Target’s management of assets?