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

ID: 2613950 • Letter: T

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. more, more dollars from existing assets, efficient in generating growing return to TArget's Shareholders.

option (c) i.e the trend of target's net income account is consistent with the trend of Target's ROA and ROE ratios.

2. interests and taxes , degrees of financial leverages ,

option (c) is correct, as in option (b) COGS for 2008 and 2009 only provide a little explanation for trend in BEP ratios but in option (c) Consistent decreaasing trend of AR and Long term assets provide much of the explanantion for BEP trend.

improvement , efficient which is consistent ,

3. Sales/ Net Sales in denominator , constant and option (b).

4. mostly attributed to reduction in other expenses for 2010 (for operating profit margin) and also consistent fall in interest expenses.

No, 35% tax on net income every year. There is no change in tax rate only taxes have changed due to change in PBT.

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