Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended January 30, 2016, are provided in available in Connect. This material is also available under the Investor Relations link at the company's website (www.target.com).

Required:

1. By what name does Target label its balance sheet?

2. What amounts did Target report for the following items on January 30, 2016?

a. Current assets

b. Long-term assets

c. Total assets

d. Current liabilities

e. Long-term liabilities

f. Total liabilities

g. Total shareholders' equity

3. What was Target's largest current asset? What was its largest current liability?

4. Compute Target's current ratio and debt to equity ratio in 2016?

5. Assuming Target's industry had an average current ratio of 1.0 and an average debt to equity ratio of 2.5, comment on Target's liquidity and long-term solvency.