Refer to the financial information for Target Corporation, presented in MS-I5 and MS-16.

a. Compute its return on assets (ROA) for the fiscal year ending February 3, 2018. Compute two ROA measures, one using net earnings from continuing operations and one using net earnings. Assume an income tax rate of 25%.

b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). Confirm that ROA = PM x AT.

Data from MS-I5:

Data from MS-16:

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February 3, January 28, 2017 ($ milons) 2018 Assets $ 2,643 8,657 1,284 $ 2,512 8,309 1,169 Cash ard cash equivalents. Inventory..... Other current assets... Total current assets... Property and equipment, net Other noncurrent assets.. ... .... ..... 12,564 25,018 1,417 11,990 24,658 783 Total assets ... $38,999 $37,431 Liabities and shareholders' investment Accounts payable..... Accrued and other current liablities.. Current porticn of long-term debt and other borrowings. Total current liabilities... Long-term debt and other borrowings Deferred income taxes.. Other noncurrent liabilities Total noncurrent liabilities.. Total shareholders' investment.. $ 8,677 4,254 270 $ 7.252 3,737 1,718 13,201 11,317 12,707 11,031 861 1,879 13,771 713 2,059 14.089 11.709 10,953 Total liabilities and shareholders investment. $38,999 $37,431