Homework Help is Here – Start Your Trial Now!
Business
Accounting
Use the attached information to complete the ratio analysis.  The Ratio Analysis is for Profitability.

Use the attached information to complete the ratio analysis.  The Ratio Analysis is for Profitability.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...
See similar textbooks
icon
Related questions
Question

Use the attached information to complete the ratio analysis.  The Ratio Analysis is for Profitability.

Vertical Analysis - Balance Sheets Target Corporation INSTRUCTIONS: Use the 2018 Annual report for both years' figures. Complete all greyed boxes. Ratios should be carried to 2 decimal places. FY 2018 FY 2017 ASSETS Cash and cash equivalents 12.43% $ 75.86% $ 1,556 2,643 21.08% 8,597 68.56% Inventory Other current assets 9,497 11.71% $ 30.32% $ 1,466 1,300 10.37% Total current assets 12,519 12,540 31.11% Property and equipment Land 6,064 23.75% $ 6,095 24.84% 29,240 114.52% $ 23.15% $ 9.96% $ 1.80% $ -73.19% $ 61.84% $ 4.76% $ 3.08% $ Buildings and equipment 28,131 114.65% Fixtures and equipment 5,912 5,623 22.92% Computer hardware and software 2,544 2,645 10.78% Construction-in-progress 460 440 1.79% Accumulated depreciation Property and equipment, net Operating Lease Assets Other noncurrent assets (18,687) (18,398) -74.98% 25,533 60.88% 24,536 1,884 1,965 4.67% 1,273 1,343 3.33% TOTAL ASSETS 41,290 100.00% $ 40,303 100.00% LIABILITIES Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Total current liabilities 65.01% $ 27.98% $ 7.01% $ 50.06% $ 8,677 66.48% 9,761 4,201 4,094 31.37% 1,052 281 2.15% 15,014 13,052 45.55% Long-term debt and other borrowings Noncurrent operating lease liabilities Deferred income taxes 68.25% $ 13.38% $ 6.49% $ 11.88% $ 10,223 11,117 71.26% 2,004 1,924 12.33% 972 693 4.44% Other noncurrent liabilities 1,780 1,866 11.96% Total noncurrent liabilities $4 14,979 49.94% $ 15,600 54.45% Total liabilities 29,993 72.64% $ 28,652 71.09% SHAREHOLDERS' INVESTMENT 38.00% $ 53.48% $ 53.26% $ Common stock 43 45 0.39% Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' investment 6,042 5,858 50.28% 6,017 6,495 55.75% -7.13% $ 27.36% $ (805) (747) -6.41% 11,297 11,651 28.91% TOTAL LIABILITIES & SHAREHOLDERS' INVESTMENT $ 41,290 100.00% $ 40,303 100.00% %24
Transcribed Image Text:Vertical Analysis - Balance Sheets Target Corporation INSTRUCTIONS: Use the 2018 Annual report for both years' figures. Complete all greyed boxes. Ratios should be carried to 2 decimal places. FY 2018 FY 2017 ASSETS Cash and cash equivalents 12.43% $ 75.86% $ 1,556 2,643 21.08% 8,597 68.56% Inventory Other current assets 9,497 11.71% $ 30.32% $ 1,466 1,300 10.37% Total current assets 12,519 12,540 31.11% Property and equipment Land 6,064 23.75% $ 6,095 24.84% 29,240 114.52% $ 23.15% $ 9.96% $ 1.80% $ -73.19% $ 61.84% $ 4.76% $ 3.08% $ Buildings and equipment 28,131 114.65% Fixtures and equipment 5,912 5,623 22.92% Computer hardware and software 2,544 2,645 10.78% Construction-in-progress 460 440 1.79% Accumulated depreciation Property and equipment, net Operating Lease Assets Other noncurrent assets (18,687) (18,398) -74.98% 25,533 60.88% 24,536 1,884 1,965 4.67% 1,273 1,343 3.33% TOTAL ASSETS 41,290 100.00% $ 40,303 100.00% LIABILITIES Accounts payable Accrued and other current liabilities Current portion of long-term debt and other borrowings Total current liabilities 65.01% $ 27.98% $ 7.01% $ 50.06% $ 8,677 66.48% 9,761 4,201 4,094 31.37% 1,052 281 2.15% 15,014 13,052 45.55% Long-term debt and other borrowings Noncurrent operating lease liabilities Deferred income taxes 68.25% $ 13.38% $ 6.49% $ 11.88% $ 10,223 11,117 71.26% 2,004 1,924 12.33% 972 693 4.44% Other noncurrent liabilities 1,780 1,866 11.96% Total noncurrent liabilities $4 14,979 49.94% $ 15,600 54.45% Total liabilities 29,993 72.64% $ 28,652 71.09% SHAREHOLDERS' INVESTMENT 38.00% $ 53.48% $ 53.26% $ Common stock 43 45 0.39% Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' investment 6,042 5,858 50.28% 6,017 6,495 55.75% -7.13% $ 27.36% $ (805) (747) -6.41% 11,297 11,651 28.91% TOTAL LIABILITIES & SHAREHOLDERS' INVESTMENT $ 41,290 100.00% $ 40,303 100.00% %24
Use the Financial Statements provided to calculate the Ratio Analysis for Profitability. PROFITABILITY Net margin (return on sales) Formula Net income/net sales***for this use sales only (do not include other revenue) Calculation Asset turnover Formula Net sales**same as above /average total assets Calculation Return on investment Formula Net income /average total assets Calculation Return on equity Formula Net income/average total stockholders' equity Calculation Earnings per share Formula Net earnings available for common stock /average number of shares outstanding Calculation Price-earnings Formula Market price per share /earnings per share Calculation 71.17 and 72.95 are market price per share to use Book value per share (common) Formula Stockholders' equity - preferred stock/outstanding common shares Calculation 517.8 and 541.7 are the outstanding shares figure to use Vertical Analysis - Income Statement Target Corporation INSTRUCTIONS: Use the 2018 Annual report for both years' information. Complete all greyed boxes. Ratios should be carried to 2 de cimal places. FY 2018 % FY 2017 % Sales (add both revenue figures) 24 75,356 100.00% 72,714 100.00% Cost of sales Gross margin Selling, general, and administrative expenses Depreciation and amortization Operating Income Net interest expense Net other (income)/ expense Earnings from continuing operations before income taxes Provision for income taxes 53,299 70.73% 51,125 70.31% $22,057 29.27% $21,589 29.69% 15,723 20.86% 20.82% 15,140 2,224 2.95% 2,225 3.06% $ 4,110 5.45% $ 4,224 5.81% 461 0.61% $ 653 0.90% (27) -0.04% $ (59) -0.08% $ 3,676 4.88% $ 3,630 4.99% 746 20.29% $ 722 19.89% $ 2,930 Net earnings from continuing operations Discontinued operations, net of tax Net earnings/(loss) 3.89% 2,908 4.00% 0.01% $ 6 0.01% $ 2,937 3.90% $ 2,914 4.01%
Transcribed Image Text:Use the Financial Statements provided to calculate the Ratio Analysis for Profitability. PROFITABILITY Net margin (return on sales) Formula Net income/net sales***for this use sales only (do not include other revenue) Calculation Asset turnover Formula Net sales**same as above /average total assets Calculation Return on investment Formula Net income /average total assets Calculation Return on equity Formula Net income/average total stockholders' equity Calculation Earnings per share Formula Net earnings available for common stock /average number of shares outstanding Calculation Price-earnings Formula Market price per share /earnings per share Calculation 71.17 and 72.95 are market price per share to use Book value per share (common) Formula Stockholders' equity - preferred stock/outstanding common shares Calculation 517.8 and 541.7 are the outstanding shares figure to use Vertical Analysis - Income Statement Target Corporation INSTRUCTIONS: Use the 2018 Annual report for both years' information. Complete all greyed boxes. Ratios should be carried to 2 de cimal places. FY 2018 % FY 2017 % Sales (add both revenue figures) 24 75,356 100.00% 72,714 100.00% Cost of sales Gross margin Selling, general, and administrative expenses Depreciation and amortization Operating Income Net interest expense Net other (income)/ expense Earnings from continuing operations before income taxes Provision for income taxes 53,299 70.73% 51,125 70.31% $22,057 29.27% $21,589 29.69% 15,723 20.86% 20.82% 15,140 2,224 2.95% 2,225 3.06% $ 4,110 5.45% $ 4,224 5.81% 461 0.61% $ 653 0.90% (27) -0.04% $ (59) -0.08% $ 3,676 4.88% $ 3,630 4.99% 746 20.29% $ 722 19.89% $ 2,930 Net earnings from continuing operations Discontinued operations, net of tax Net earnings/(loss) 3.89% 2,908 4.00% 0.01% $ 6 0.01% $ 2,937 3.90% $ 2,914 4.01%
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage
SEE MORE TEXTBOOKS