For numbers 39-51, identify the appropriate formula and calculate the following ratios for 2015 and 2014 **AND analyze the results Using Target 10K Annual Report. (Market performance ratios (earnings per share, book value per share, price-earnings ratio, and dividend yield are already computed and included in the template.) You will need to use the 2014 reports in order to calculate averages where applicable.

Measures of liquidity (15 pts) 39. Working capital

40. Current ratio

41. Quick ratio

42. Inventory turnover

43. Average days to sell inventory

Measures of solvency (15 pts)

44. Debt to assets

45. Debt to equity

46. Number of times interest earned

47. Plant assets to long-term liabilities

Measures of profitability (15 pts)+5

48. Net margin (return on sales)

49. Asset turnover

50. Return on investment

51. Return on equity

Section 4 ? Budgeting (25 points)?

1. Calculate the percentage change for each of the following categories of revenues and expenses for FY 2010 through FY 2014.

2. Calculate the average percentage change

3. Use the FY 2014 data and the average percentage change calculated in 2 to prepare a budget for FY 2015

4. Compare actual amounts from FY 2015 to the budget

Prepare an analytic report on your findings in Sections 2 ? 4.

?

Transcribed Image Text:

Consolidated Statements of Financial Position (millions, except footnotes) Assets Cash and cash equivalents, including short-term investments of $3,008 and $1,520 $ Inventory Assets of discontinued operations Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Noncurrent assets of discontinued operations Other noncurrent assets Total assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent liabilities of discontinued operations Other noncurrent liabilities Total noncurrent liabilities Shareholders' investment Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Pension and other benefit liabilities Currency translation adjustment and cash flow hedges January 30, 2016 Total shareholders' investment Total liabilities and shareholders' investment 4,046 $ 8,601 322 1,161 14,130 $ 6,125 27,059 5,347 2,617 315 (16,246) 25,217 75 840 $ 40,262 $ 7,418 S 4,236 815 153 12,622 11,945 823 18 1,897 14,683 50 5,348 8,188 January 31, 2015 (588) (41) 12.957 40,262 $ 2,210 8,282 1,058 2,074 13,624 6,127 26,613 5,329 2,552 424 (15,093) 25,952 717 879 41,172 7,759 3,783 91 103 11,736 12,634 1,160 193 1.452 15,439 53 4,899 9,644 (561) (38) 13,997 $ 41,172 Common Stock Authorized 6,000,000,000 shares. $0.0833 parvalue: 602,226.517 sharesissued and outstanding at January 30, 2016 640.213.967 shares issued and outstanding at January 31, 2015. Consolidated Statements of Cash Flows (millions) Operating activities Net earnings/(loss) Earnings/(losses) from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net eamings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Gain on sale Loss on debt extinguishment Noncash (gains) / losses and other, net Changes in operating accounts: Accounts receivable originated at Target Proceeds on sale of accounts receivable originated at Target Inventory Other assets Accounts payable and accrued liabilities Cash provided by operating activities-continuing operations Cash provided by/(required for) operating activities-discontinued operations Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Proceeds from sale of businesses Change in accounts receivable originated at third parties Proceeds from sale of accounts receivable originated at third parties Cash paid for acquisitions, net of cash assumed Other investments Cash provided by/ (required for) investing activities-continuing operations Cash provided by/(required for) investing activities-discontinued operations Cash provided by/(required for) investing activities Financing activities Change in commercial paper, net Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises and related tax benefit Cash required for financing activities Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents A $ $ 2015 $ 3,363 $ 42 3,321 2,213 115 (322) (620) (12) (316) 227 534 5,140 704 5,844 (1,438) 28 1,875 24 489 19 508 - - (85) (1,362) (3,438) 369 (4.516) 1,836 2.210 4,046 $ 604 S 2014 (127) 126 (1,636) S (4,085) 2,449 2,129 71 7 - 285 40 - - (512) (115) 777 5,131 (692) 4,439 (1,786) 95 - - 1 (20) 106 (1,605) (321) (1.926) (80) 1,993 (2,079) (1,205) 373 (998) 1,515 695 2,210 S 871 $ 2013 1,971 Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental information Interest paid, net of capitalized interest Income taxes (refunded)/paid 1,251 88 Property and equipment acquired through capital lease obligations Includes cash of our discontinued operations of $25 million and $59 million at February 1, 2014 and February 2, 2013, respectively. Includes cash of our discontinued operations of $25 million at February 1, 2014. See accompanying Notes to Consolidated Financial Statements. (723) 2,694 1,996 106 58 (391) 445 87 157 2,703 (504) (79) 247 7,519 (999) 6,520 (1,886) 70 - 121 3,002 (157) 130 1280 (1,551) (271) (890) (3,463) (1,006) (1,461) 456 (6,364) 26 (89) 784 695 1,043 1,386 132 Consolidated Statements of Shareholders' Investment (millions, except footnotes) February 2, 2013 Net earnings Other comprehensive income Dividends declared Repurchase of stock Stock options and awards February 1, 2014 Net loss Other comprehensive loss Dividends declared Repurchase of stock Stock options and awards January 31, 2015 Net earnings Common Stock Stock Par Shares Value 645.3 $ - - 1 (21.9) 9.5 632.9 $ ||| - - (0.8) 8.1 640.2 $ - 54 $ - - - (2) -11181111121 Additional 53 $ 53 $ (4) Paid-in Retained Capital Earnings 3,925 $13,155 $ 1,971 - 98111188111 429 4,899 $ - (1,051) (1,476) Accumulated Other Comprehensive Income/(Loss) 545 4,470 $ 12,599 $ (1,636) Other comprehensive income Dividends declared Repurchase of stock (44.7) Stock options and awards 6.7 449 January 30, 2016 602.2 $ 50 $ 5,348 $ Dividends declared per share were $2.20, $1.99, and $1.65 in 2015, 2014, and 2013, respectively. See accompanying Notes to Consolidated Financial Statements. (1,273) (46) - 9,644 $ 3,363 (1,378) (3,441) 8,188 S Total (576) $ 16,558 1,971 - (315) - - 292 (891) $ 16,231 (1,636) - - (30) (315) (1,051) (1478) 546 m Te 292 (1.273) (599) $ 13,997 3,363 (46) 429 (30) (1.378) (3,445) 450 (629) $ 12,957 Consolidated Statements of Financial Position (millions, except footnotes) Assets Cash and cash equivalents, including short-term investments of $3,008 and $1,520 $ Inventory Assets of discontinued operations Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Noncurrent assets of discontinued operations Other noncurrent assets Total assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent liabilities of discontinued operations Other noncurrent liabilities Total noncurrent liabilities Shareholders' investment Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Pension and other benefit liabilities Currency translation adjustment and cash flow hedges January 30, 2016 Total shareholders' investment Total liabilities and shareholders' investment 4,046 $ 8,601 322 1,161 14,130 $ 6,125 27,059 5,347 2,617 315 (16,246) 25,217 75 840 $ 40,262 $ 7,418 S 4,236 815 153 12,622 11,945 823 18 1,897 14,683 50 5,348 8,188 January 31, 2015 (588) (41) 12.957 40,262 $ 2,210 8,282 1,058 2,074 13,624 6,127 26,613 5,329 2,552 424 (15,093) 25,952 717 879 41,172 7,759 3,783 91 103 11,736 12,634 1,160 193 1.452 15,439 53 4,899 9,644 (561) (38) 13,997 $ 41,172 Common Stock Authorized 6,000,000,000 shares. $0.0833 parvalue: 602,226.517 sharesissued and outstanding at January 30, 2016 640.213.967 shares issued and outstanding at January 31, 2015. Consolidated Statements of Cash Flows (millions) Operating activities Net earnings/(loss) Earnings/(losses) from discontinued operations, net of tax Net earnings from continuing operations Adjustments to reconcile net eamings to cash provided by operations: Depreciation and amortization Share-based compensation expense Deferred income taxes Gain on sale Loss on debt extinguishment Noncash (gains) / losses and other, net Changes in operating accounts: Accounts receivable originated at Target Proceeds on sale of accounts receivable originated at Target Inventory Other assets Accounts payable and accrued liabilities Cash provided by operating activities-continuing operations Cash provided by/(required for) operating activities-discontinued operations Cash provided by operations Investing activities Expenditures for property and equipment Proceeds from disposal of property and equipment Proceeds from sale of businesses Change in accounts receivable originated at third parties Proceeds from sale of accounts receivable originated at third parties Cash paid for acquisitions, net of cash assumed Other investments Cash provided by/ (required for) investing activities-continuing operations Cash provided by/(required for) investing activities-discontinued operations Cash provided by/(required for) investing activities Financing activities Change in commercial paper, net Additions to long-term debt Reductions of long-term debt Dividends paid Repurchase of stock Stock option exercises and related tax benefit Cash required for financing activities Effect of exchange rate changes on cash and cash equivalents Net increase/(decrease) in cash and cash equivalents A $ $ 2015 $ 3,363 $ 42 3,321 2,213 115 (322) (620) (12) (316) 227 534 5,140 704 5,844 (1,438) 28 1,875 24 489 19 508 - - (85) (1,362) (3,438) 369 (4.516) 1,836 2.210 4,046 $ 604 S 2014 (127) 126 (1,636) S (4,085) 2,449 2,129 71 7 - 285 40 - - (512) (115) 777 5,131 (692) 4,439 (1,786) 95 - - 1 (20) 106 (1,605) (321) (1.926) (80) 1,993 (2,079) (1,205) 373 (998) 1,515 695 2,210 S 871 $ 2013 1,971 Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental information Interest paid, net of capitalized interest Income taxes (refunded)/paid 1,251 88 Property and equipment acquired through capital lease obligations Includes cash of our discontinued operations of $25 million and $59 million at February 1, 2014 and February 2, 2013, respectively. Includes cash of our discontinued operations of $25 million at February 1, 2014. See accompanying Notes to Consolidated Financial Statements. (723) 2,694 1,996 106 58 (391) 445 87 157 2,703 (504) (79) 247 7,519 (999) 6,520 (1,886) 70 - 121 3,002 (157) 130 1280 (1,551) (271) (890) (3,463) (1,006) (1,461) 456 (6,364) 26 (89) 784 695 1,043 1,386 132 Consolidated Statements of Shareholders' Investment (millions, except footnotes) February 2, 2013 Net earnings Other comprehensive income Dividends declared Repurchase of stock Stock options and awards February 1, 2014 Net loss Other comprehensive loss Dividends declared Repurchase of stock Stock options and awards January 31, 2015 Net earnings Common Stock Stock Par Shares Value 645.3 $ - - 1 (21.9) 9.5 632.9 $ ||| - - (0.8) 8.1 640.2 $ - 54 $ - - - (2) -11181111121 Additional 53 $ 53 $ (4) Paid-in Retained Capital Earnings 3,925 $13,155 $ 1,971 - 98111188111 429 4,899 $ - (1,051) (1,476) Accumulated Other Comprehensive Income/(Loss) 545 4,470 $ 12,599 $ (1,636) Other comprehensive income Dividends declared Repurchase of stock (44.7) Stock options and awards 6.7 449 January 30, 2016 602.2 $ 50 $ 5,348 $ Dividends declared per share were $2.20, $1.99, and $1.65 in 2015, 2014, and 2013, respectively. See accompanying Notes to Consolidated Financial Statements. (1,273) (46) - 9,644 $ 3,363 (1,378) (3,441) 8,188 S Total (576) $ 16,558 1,971 - (315) - - 292 (891) $ 16,231 (1,636) - - (30) (315) (1,051) (1478) 546 m Te 292 (1.273) (599) $ 13,997 3,363 (46) 429 (30) (1.378) (3,445) 450 (629) $ 12,957

Answer rating: 100% (QA)

ANSWER 43 Average days to sell inventory cannot be calculated without inventory turnover details Mea... View the full answer