Chapter $3$ Assignment $($Adapted from ATC $3-1$ in Text$)$

Use the Target Corporation Form $10-$K to answer the following questions related to the $2023$ Fiscal Year. Note that Target's Fiscal Year ends in late January or early February, so the $2023$ Fiscal Year ends February $3,2024.$ You will need to use the financial statements as well as notes to the financial statements to answer the questions. Show your calculations and extend all decimal points at least $2$ places.

a$)$ What percentage of Target's total revenues end up as net earnings for the most recent year? $($Hint: use the Statement of Operations. Note there are separate lines for sales, other income and total revenue$)$

b$)$ What percentage of Target's sales go to pay for the costs of the goods being sold? $($Hint: use the Statement of Operations. Note there are separate lines for sales, other income and total revenue$)$

c$)$ Calculate the Cost of Sales and the Gross Margin as a percentage of Target's Sales for the $2023,2022$ and $2021$ Fiscal Years. Comment on the changes and the significance of changes in these ratios. $($Hint: use the Statement of Operations$)$

d$)$ What costs does Target include in its Cost of Sales account? $($Hint: use the Notes to the Financial Statements starting on page $45($page $46$ of the pdf file$)$ of the $10-K)$

e$)$ When does Target recognize revenue from the sale of gift cards? $($Hint: use the Notes to the Financial Statements starting on page $45($page $46$ of the pdf file$)$ of the $10-K)$