Common-Size Balance Sheets Following is the balance sheet for Target Corporation

Question

Common-Size Balance Sheets

Following is the balance sheet for Target Corporation. Prepare Target’s common-size balance sheets as of January 31, 2015 and February 1, 2014.
(Round your answers to one decimal place.)

($ millions) January 31,
2015 February 1,
2014 Assets Cash and cash equivalents $2,210 $670 Inventory 8,790 8,278 Other current assets 3,087 2,625 Total current assets 14,087 11,573 Property and equipment, net 25,958 26,412 Other noncurrent assets 1,359 6,568 Total assets $41,404 $44,553 Liabilities and shareholders’ investment Accounts payable $7,759 $7,335 Accrued and other current liabilities 3,886 4,299 Current portion of long-term debt and notes payable 91 1,143 Total current liabilities 11,736 12,777 Long-term debt 12,705 11,429 Deferred income taxes 1,321 1,349 Other noncurrent liabilities 1,645 2,767 Total shareholders’ investment 13,997 16,231 Total liabilities and shareholders’ investment $41,404 $44,553

Explanation / Answer

Under common size balance sheet, amounts of each item in assets side of the balance sheet is shown as a percentage of total assets and total assets is assumed to be equal to 100%. Similarly, amounts of each item in liabilities and stockholders' equity side of the balance sheet is shown as a percentage of total liabilities and stockholders' equity which is assumed to be equal to 100%.

For example, cash and cash equivalent of 2015 is 5.3% (i.e. $2,210/$41,404) of total assets of 2015.  

TARGET CORPORATION
Common-Size Balance Sheets 2015 2014 Cash and cash equivalents 5.3% 1.5% Inventory 21.2% 18.6% Other current assets 7.5% 5.9% Total current assets 34.0% 26.0% Property and equipment, net 62.7% 59.3% Other noncurrent assets 3.3% 14.7% Total assets 100% 100% Accounts payable 18.7% 16.5% Accrued and other current liabilities 9.4% 9.6% Current portion of long-term debt and notes payable 0.2% 2.6% Total current liabilities 28.3% 28.7% Long-term debt 30.7% 25.7% Deferred income taxes 3.2% 3.0% Other noncurrent liabilities 4.0% 6.2% Total shareholders’ investment 33.8% 36.4% Total liabilities and shareholders’ investment 100% 100%

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