Use the attached information to complete the ratio analysis. The Ratio Analysis is for Profitability. **Vertical Analysis - Balance Sheets: Target Corporation**This image presents a vertical analysis of Target Corporation's balance sheets for the fiscal years 2018 (FY 2018) and 2017 (FY 2017), highlighting the percentage breakdown and comparisons of different financial categories.**Instructions:**- Use the 2018 Annual Report for both years' figures.- Complete all greyed boxes. Ratios should be carried to two decimal places.### FY 2018 Breakdown**Assets:**- **Cash and cash equivalents:** $1,556 (3.77%)- **Inventory:** $9,497 (22.99%)- **Other current assets:** $1,466 (3.55%)- **Total current assets:** $12,519 (30.32%) - **Property and equipment:** - **Land:** $6,064 (14.69%) - **Buildings and equipment:** $29,240 (70.84%) - **Fixtures and equipment:** $5,912 (14.32%) - **Computer hardware and software:** $2,544 (6.16%) - **Construction-in-progress:** $460 (1.12%) - **Accumulated depreciation:** $(18,687) (-45.25%) - **Net property and equipment:** $25,533 (61.84%) - **Operating lease assets:** $1,968 (4.77%)- **Other noncurrent assets:** $1,275 (3.08%)- **Total Assets:** $41,290 (100.00%)**Liabilities:**- **Current liabilities:** - **Accounts payable:** $9,761 (23.65%) - **Accrued and other current liabilities:** $4,201 (10.17%) - **Current portion of long-term debt and other borrowings:** $1,052 (2.55%) - **Total current liabilities:** $15,014 (36.37%)- **Noncurrent liabilities:** - **Long-term debt and other borrowings:** $10,223 (24.76%) - **Noncurrent operating lease liabilities:** $2,004 (4.85%) - **Deferred income taxes:** $972 (2.35%) - **Other noncurrent liabilities:** $1,780 (4.31%) - **Total noncurrent liabilities:** $14,979 ( ### Profitability Ratio Analysis Instructions#### **Formulas and Calculations for Profitability Ratios**- **Net Margin (Return on Sales)** - **Formula:** Net income / net sales (use sales only, do not include other revenue) - **Calculation:** To be completed.- **Asset Turnover** - **Formula:** Net sales (same as above) / average total assets - **Calculation:** To be completed.- **Return on Investment** - **Formula:** Net income / average total assets - **Calculation:** To be completed.- **Return on Equity** - **Formula:** Net income / average total stockholders' equity - **Calculation:** To be completed.- **Earnings per Share (EPS)** - **Formula:** Net earnings available for common stock / average number of shares outstanding - **Calculation:** To be completed.- **Price-Earnings Ratio** - **Formula:** Market price per share / earnings per share - **Calculation:** 71.17 and 72.95 are the 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 figures 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 two decimal places.| **Description** | **FY 2018** | **%** | **FY 2017** | **%** ||--------------------------------------------------|-----------------|--------|-------------|--------|| Sales (add both revenue figures) | $75,356 | 100.00%| $72,714 | 100.00%|| Cost of sales | $53,299 | 70.73% | $51,125 | 70.31% || Gross margin | $22,057 | 29.27% | $21,589 | 29.69% || Selling, general, and administrative expenses | $15,723 | 20.86% | $15,140 | 20.82% || Depreciation and amortization

Ratio analysis is useful to measure the financial performance of the company and helpful to make…

Answered: Use the attached information to…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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