Use the Target Corporation\'s Form 10-K to complete the case. You will be workin
ID: 2598525 • Letter: U
Question
Use the Target Corporation's Form 10-K to complete the case. You will be working with Target's FY 2012 (year ended February 2, 2013). Target's Form 10-K is available on the company's website or through the SEC's EDGAR database. Appendix A in your text provides instructions for using the EDGAR database
Section 1
Questions 31 - 51 are presented below. Please be sure to show all support for your work. You will be using the following sections of the annual report: MD&A, consolidated financial statements and notes to the financial statements. Please use your homework and information in the assigned chapters to complete the case.
31. Using Excel, compute common-size income statements (vertical analysis) for 2012 and 2011. In common-size income statements, net sales is 100% and every other number is a percentage of sales (you can stop at net earnings). (9 pts)
32. Using the common-size (vertical) income statements, identify the significant trends. (2 pts)
33. Using Excel, compute common-size (vertical analysis) balance sheets at the end of fiscal 2012 and 2011. In common-size balance sheets, total assets is 100% and every other number is a percentage of total assets. Be sure to complete the entire balance sheet. (12 pts)
34. Using the common-size (vertical) balance sheet, identify the significant trends. (2 pts)
35. Using Excel,
horizontal analysis of the income statement comparing 2012 and 2011 (you can stop at net earnings). (9 pts)
36. Using the horizontal analysis of the income statement, identify the significant trends. (2 pts)
37. Using Excel, horizontal analysis of the balance sheet comparing 2012 and 2011. (12 pts)
38. Using the horizontal analysis of the balance sheet, identify the significant trends. (2 pts)
Section 2 -
For numbers 39-51, calculate the following ratios for 2012 and 2011 **AND analyze the results.
39. Net margin
40. Return on investment
41. Return on equity
42. Earnings per share
43. Price-earnings ratio
44. Book value per share of common stock
45. Working capital
46. Current ratio
47. Quick (acid-test) ratio
48. Accounts receivable turnover
49. Inventory turnover
50. Debt to equity ratio
51. Debt to assets ratio
Consolidated Statements of Operations (millions, except per share data) 2012 2011 $68.488 1,399 80,885 47.880 2010 Sales $71,960 1,341 73,301 $65,788 Credit card revenues 1,604 Total revenues 67.390 45,725 13.489 Cost of sales 50,568 Selling, general and administrative expenses 14,914 14.106 Credit card expenses 467 446 860 2,142 2,131 2,084 Gain on receivables held for sale (161) 5,371 Earnings before interest ex Net interest expense Earnings before income taxes pense and income taxes 5,322 5,252 757 4.495 1,575 $2,920 54.03 54.00 762 886 4,609 4.458 Provision for income taxes 1,610 Net earnings Basic earnings per share Diluted Weighted average common shares outstanding $2,999 $4.57 $4.52 1,527 $2,929 54.31 54.28 earnings per share Basic 656.7 679.1 723.6 Diluted 663.3 883.9 729.4Explanation / Answer
31) Common size income statement
32) There are decreasing trends in the earnings in 2012 from 2011 because the net earnings is decreased from 4.28% of sales in 2011 to 4.17% of sales in 2012.
33) Common size Balance Sheet
34) The significant trends in 2012 is increasing from 2011 because the total assets has increased from $46,630 in 2011 to $48,163 in 2012.
Particulars 2012 (in $) 2012 2011(in $) 2011 Sales 71,960 100 68,466 100 Credit Card revenues 1,341 1.86 1,399 2.04 Total Revenues 73,301 101.86 69,865 102.04 Cost of sales 50,568 70.27 47,860 69.90 Selling, general and administration expenses 14,914 20.73 14,106 20.60 Credit card expenses 467 0.65 466 0.68 Depreciation and amortization 2,142 2.98 2,131 3.11 Gain on receivables held for sale (161) 0.22 - - Earnings before interest expense and income tax 5,371 7.46 5,322 7.77 Net Interest expense 762 1.06 866 1.26 Earning before income tax 4,609 6.40 4,456 6.51 Provision for income taxes (1,610) 2.24 (1,527) 2.23 Net Earnings 2,999 4.17 2,929 4.28Related Questions
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