Target Corporation Selected Income Statement, Balance Sheet, and Related Data 1

Question

Target Corporation Selected Income Statement, Balance Sheet, and Related Data 1 Income Statement Sales Less: Cost of goods sold Gross profit Less: Selling, general, and administrative expenses Less: Other expenses Earnings before interest and taxes (EBIT) Less: Interest expense Earnings before taxes (EBT) Less: Taxes Net income Less: Common dividends paid Dividends per share 2008 $65,786,000,000 $63,435,000,000 $62,884,000,000 44,157,000,000 18,727,000,000 12,954,000,000 1,609,000,000 4,402,000,000 866,000,000 3,536,000,000 1,322,000,000 2010 2009 45,725,000,000 20,061,000,000 13,469,000,000 860,000,000 5,252,000,000 757,000,000 4,495,000,000 1,575,000,000 44,062,000,000 19,373,000,000 13,078,000,000 1,521,000,000 4,673,000,000 801,000,000 3,872,000,000 1,384,000,000 $2,920,000,000 $2,488,000,000 $2,214,000,000 609,000,000 $0.92 496,000,000 465,000,000 $0.67 $0.62

Explanation / Answer

1. Options that are correct are (b) and (c). Not very sure for (a). But I think (a) is correct as well.

2. options (b) and (c) are correct. As inventory turnover ratio fall is either due to fall in COGS due to fall in sales or accumulation of inventory.

3. risky future economic conditions, customer defaults, loosing out opportunities.

4. option (a) is correct. As its observed.

efficicncy/good fixed assets utilization in manangement performance

option (a) is correct.

5. Sales revenue.

6. options a, b, c, d are correct. Still in option (c) if we consider for Target, then it might not be true because for Target increase in fixed assets turnover ratio is due to more increase in sales than net fixed assets, whereas the fixed assets were increasing. So this explanantion might not be valid for Target, but in gen for othercompanies it can be considered valid.

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