Analyze the target corporation's 2010 annual report and answer some questions about it.

Answer the following questions:

1. Prepare a five-year horizontal analysis of target's sales and net earnings. Use 2006 as your base year 'and present the trended data in dollar and percentage form as illustrated on pages 682-83 of the textbook. You will find this data on page 18 of target's annual report. What insights are revealed by the data?

2. Prepare a common-size balance sheet for the fiscal years ended January 29, 2011 and January 30, 2010 using the data on page 34 of their annual report. Use the format shown in exhibit 15-4 within the chapter.

3. Calculate target's price-earnings ratio, dividend payout ratio, dividend yield ratio, return on total assets, return on common stockholders' equity, and book value per share for the fiscal year ended January 29, 2011. Assume target's market price per share of common stock was $55 as of January 31, 2011. You will find target's basic earnings per share on page 33 of their annual report.

4. Calculate target's working capital, current ratio, acid-test ratio, inventory turnover ratio, and average sales period for their fiscal year ended January 31, 2011.

5. Calculate target's Times interest earned ratio and debt-to-equity ratio for the fiscal year ended January 31, 2011.

6. Below are a few financial ratios for Wal-Mart stores, Inc. for its fiscal year ended January 31, 2011? Discuss how target's performance compares to Wal-Mart's. Gross margin percentage 24.7% current ratio .89 Acid-test Ratio .21 average sales period 39.9 days debt-to-equity ratio 1.53 price-earnings ratio 12.7 return on total assets 10.2%

Answer rating: 100% (QA)

1 Particulars 2010 2009 2008 2007 2006 Sales and credit card revenues millions 67390 65357 64948 63367 59490 Net income millions 2920 2488 2214 2849 2... View the full answer