Refer to the financial information for Target Corporation, presented below: Target Corporation Balance Sheets ($ millions) Assets Cash and cash equivalents Inventory Other current assets Total current assets Property and equipment, net Other noncurrent assets Total assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and notes payable Total current liabilities Long-term debt Deferred income taxes Other noncurrent liabilities Total shareholders' investment Total liabilities and shareholders' investment Income Statement Return on Assets= ($ millions) Profit Margin- Sales revenue Cost of sales Selling, general and administrative expenses Depreciation and amortization Earnings from continuing operations before interest and income taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings (loss) Asset Turnover - February January 3, 28, 2018 2017 * 96 $2,643 $2,512 8,657 8,309 1,264 1,169 12,564 11,990 25,018 24,658 1,417 783 $38,999 $37,431 a. Compute its return on assets (ROA) for the fiscal year ending February 3, 2018. Compute ROA using net earnings (loss). Assume a statutory tax rate of 2596. Round your answer to one decimal place. Use negative sign with answer, if appropriate. $8,677 $7,252 4,254 3,737 270 1,718 13,201 12,707 11,317 11,031 713 861 2,059 1,879 11,709 10,953 $38,999 $37,431 x 96 x b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). Round your answers to one decimal place. Use negative sign with answers, if appropriate. Fiscal year ended February 3, 2018 $71,879 51,125 14,248 2,194 4,312 666 3,646 718 2,928 6 $2,934
Refer to the financial information for Target Corporation, presented below: Target Corporation Balance Sheets ($ millions) Assets Cash and cash equivalents Inventory Other current assets Total current assets Property and equipment, net Other noncurrent assets Total assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and notes payable Total current liabilities Long-term debt Deferred income taxes Other noncurrent liabilities Total shareholders' investment Total liabilities and shareholders' investment Income Statement Return on Assets= ($ millions) Profit Margin- Sales revenue Cost of sales Selling, general and administrative expenses Depreciation and amortization Earnings from continuing operations before interest and income taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings (loss) Asset Turnover - February January 3, 28, 2018 2017 * 96 $2,643 $2,512 8,657 8,309 1,264 1,169 12,564 11,990 25,018 24,658 1,417 783 $38,999 $37,431 a. Compute its return on assets (ROA) for the fiscal year ending February 3, 2018. Compute ROA using net earnings (loss). Assume a statutory tax rate of 2596. Round your answer to one decimal place. Use negative sign with answer, if appropriate. $8,677 $7,252 4,254 3,737 270 1,718 13,201 12,707 11,317 11,031 713 861 2,059 1,879 11,709 10,953 $38,999 $37,431 x 96 x b. Disaggregate ROA into profit margin (PM) and asset turnover (AT). Round your answers to one decimal place. Use negative sign with answers, if appropriate. Fiscal year ended February 3, 2018 $71,879 51,125 14,248 2,194 4,312 666 3,646 718 2,928 6 $2,934
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Refer to the financial information for Target Corporation, presented below:
Target Corporation
Balance Sheets
($ millions)
Assets
Cash and cash equivalents
Inventory
Other current assets
Total current assets
Property and equipment, net
Other noncurrent assets
Total assets
Liabilities and shareholders' investment
Accounts payable
Accrued and other current liabilities
Current portion of long-term debt and notes payable
Total current liabilities
Long-term debt
Deferred income taxes
Other noncurrent liabilities
Total shareholders' investment
Total liabilities and shareholders' investment
Income Statement
($ millions)
Return on Assets =
Profit Margin=
Sales revenue
Cost of sales
Selling, general and administrative expenses
Depreciation and amortization
Earnings from continuing operations before interest and income taxes
Net interest expense
Earnings from continuing operations before income taxes
Provision for income taxes
Net earnings from continuing operations
Discontinued operations, net of tax
Net earnings (loss)
Asset Turnover =
February January
3,
28,
2018
2017
*%
$2,512
8,309
1,169
12,564 11,990
25,018 24,658
1,417
783
$38,999 $37,431
$2,643
8,657
1,264
a. Compute its return on assets (ROA) for the fiscal year ending February 3, 2018.
Compute ROA using net earnings (loss). Assume a statutory tax rate of 25%.
Round your answer to one decimal place. Use negative sign with answer, if appropriate.
*%
$8,677 $7,252
4,254
3,737
270
1,718
13,201 12,707
11,317 11,031
713
861
2,059
1,879
11,709 10,953
$38,999 $37,431
X
b. Disaggregate ROA into profit margin (PM) and asset turnover (AT).
Round your answers to one decimal place. Use negative sign with answers, if appropriate.
Fiscal year
ended
February 3, 2018
$71,879
51,125
14,248
2,194
4,312
666
3,646
718
2,928
6
$2,934
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