Question

Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow. Income Statement...

Analysis and Interpretation of Profitability
Balance sheets and income statements for Target Corporation follow.

Income Statement
For Fiscal Years Ended ($ millions) 2006 2005 2004
Sales $ 51,271 $ 45,682 $ 40,928
Credit card revenues 1,349 1,157 1,097
Total revenues 52,620 46,839 42,025
Cost of sales 34,927 31,445 28,389
Selling, general and administrative expenses 11,185 9,797 8,657
Credit card expenses 776 737 722
Depreciation and amortization 1,409 1,259 1,098
Earnings before interest and income taxes 4,323 3,601 3,159
Net interest expense 463 570 556
Earnings before income taxes 3,860 3,031 2,603
Provisions for income taxes 1,452 1,146 984
Net earnings $ 2,408 $ 1,885 $ 1,619
Balance Sheet
($ millions, except footnotes) January 28, 2006 January 29, 2005
Assets
Cash and cash equivalents $ 1,648 $ 2,245
Credit card receivables 5,666 5,069
Inventory 5,838 5,384
Other current assets 1,253 1,224
Total current assets 14,405 13,922
Property and equipment
Land 4,449 3,804
Buildings and improvements 14,174 12,518
Fixtures and equipment 3,219 2,990
Computer hardware and software 2,214 1,998
Construction-in-progress 1,158 962
Accumulated depreciation (6,176) (5,412)
Property and equipment, net 19,038 16,860
Other noncurrent assets 1,552 1,511
Total assets $ 34,995 $ 32,293
Liabilities and shareholders' investment
Accounts payable $ 6,268 $ 5,779
Accrued and other current liabilities 2,567 1,937
Current portion of long-term debt and notes payable 753 504
Total current liabilities 9,588 8,220
Long-term debt 9,119 9,034
Deferred income taxes 851 973
Other noncurrent liabilities 1,232 1,037
Shareholders' investment
Common stock 73 74
Additional paid-in-capital 2,121 1,810
Retained earnings 12,013 11,148
Accumulated other comprehensive income (loss) (2) (3)
Total shareholders' investment 14,205 13,029
Total liabilities and shareholders' equity $ 34,995 $ 32,293

(a) Compute Costco’s current ratio and quick ratio for 2006 and 2005. (Round answers two decimal places.)

2006 current ratio =Answer


2005 current ratio =Answer
2006 quick ratio =Answer
2005 quick ratio =Answer


(b) Compute Target's times interest earned and its liabilities-to-equity ratios for 2006 and 2005. (Round your answers to two decimal places.)

2006 times interest earned =Answer


2005 times interest earned =Answer
2006 liabilities-to-equity =Answer
2005 liabilities-to-equity =Answer

Comment on any observed trends. Which of the following statements best describes any trend in Target's liabilities-to-equity ratios?

The decrease in Target's liabilities-to-equity ratio remained constant.

Target's liabilities-to-equity ratio decreased slightly in 2006, we have no concerns about Target's's ability to meet its debt obligations.

Target's liabilities-to-equity ratio increased during the year primarily due to a decrease in its equity.

Target's liabilities-to-equity ratio decreased due to a decrease in its equity.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question text Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow....
Question text Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow. Income Statement For Fiscal Years Ended ($ millions) 2007 2006 2005 Sales $ 57,878 $ 51,271 $ 45,682 Credit card revenues 1,612 1,349 1,157 Total revenues 59,490 52,620 46,839 Cost of sales 39,399 34,927 31,445 Selling, general and administrative expenses 12,819 11,185 9,797 Credit card expenses 707 776 737 Depreciation and amortization 1,496 1,409 1,259 Earnings before interest and income taxes 5,069 4,323 3,601...
Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow....
Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) February 26, 2011 February 27, 2010 February 28, 2009 Revenue $ 50,272 $ 49,694 $ 45,015 Cost of goods sold 37,611 37,534 34,017 Restructuring charges - cost of goods sold 24 -- -- Gross Profit 12,637 12,160 10,998 Selling, general and administrative expenses 10,325 9,873 8,984 Restructuring charges 198 52 78 Goodwill and tradename...
Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow....
Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) February 27, 2010 February 28, 2009 March 1, 2008 Revenue $ 49,694 $ 45,015 $ 40,023 Cost of goods sold 37,534 34,017 30,477 Restructuring charges - cost of goods sold -- -- -- Gross Profit 12,160 10,998 9,546 Selling, general and administrative expenses 9,873 8,984 7,385 Restructuring charges 52 78 -- Goodwill and tradename...
Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow....
Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) February 26, 2011 February 27, 2010 February 28, 2009 Revenue $ 50,272 $ 49,694 $ 45,015 Cost of goods sold 37,611 37,534 34,017 Restructuring charges - cost of goods sold 24 -- -- Gross Profit 12,637 12,160 10,998 Selling, general and administrative expenses 10,325 9,873 8,984 Restructuring charges 198 52 78 Goodwill and tradename...
Question text Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co.,...
Question text Analysis and Interpretation of Profitability Balance sheets and income statements for Best Buy Co., Inc. follow. Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) February 26, 2011 February 27, 2010 February 28, 2009 Revenue $ 50,272 $ 49,694 $ 45,015 Cost of goods sold 37,611 37,534 34,017 Restructuring charges - cost of goods sold 24 -- -- Gross Profit 12,637 12,160 10,998 Selling, general and administrative expenses 10,325 9,873 8,984 Restructuring charges 198 52 78 Goodwill...
Previous Question was answered incorrectly!! The following table gives abbreviated balance sheets and income statements for...
Previous Question was answered incorrectly!! The following table gives abbreviated balance sheets and income statements for Starbucks (figures in $ millions). Balance Sheet End of Year Start of Year Assets Current assets: Cash and marketable securities 1,844 3,234 Accounts receivable 948 839 Inventories 1,091 1,111 Other current assets 285 288 Total current assets 4,169 5,471 Fixed assets: Net fixed assets 3,519 3,201 Other long-term assets 3,064 2,845 Total assets 10,752 11,517 Liabilities and Shareholders' Equity Current liabilities: Accounts payable 2,244...
Analysis and Interpretation of Liquidity and Solvency Balance sheets and income statements for Costco Wholesale Corporation...
Analysis and Interpretation of Liquidity and Solvency Balance sheets and income statements for Costco Wholesale Corporation follow. Costco Wholesale Corporation Consolidated Statements of Earnings For Fiscal Years Ended ($ millions) August 28, 2016 August 30, 2015 August 31, 2014 Revenue Net Sales $116,073 $113,666 $110,212 Membership fees 2,646 2,533 2,428 Total revenue 118,719 116,199 112,640 Operating expenses Merchandise costs 102,901 101,065 98,458 Selling, general and administrative 12,068 11,445 10,899 Preopening expenses 78 65 63 Operating Income 3,672 3,624 3,220 Other...
Solve in excel plz and show work Financial Statements ABC CORPORATION Balance Sheet Year Ended December...
Solve in excel plz and show work Financial Statements ABC CORPORATION Balance Sheet Year Ended December 31 (in $ millions) Assets 2006 2005 Liabilities & Stockowner’s Equity 2006 2005 Current Assets Current Liabilities Cash 22.2 19.5 Accounts Payable 29.2 24.5 Accounts Receivables 18.5 13.2 Notes Payable / Short-Term Debt 4.5 3.2 Inventories 14.2 14.3 Current Maturities of Long-Term Debt 13.3 12.3 Other Current Assets 2.0 1.0 Other Current Liabilities 3.0 4.0 Total Current Assets 56.9 48.0 Total Current Liabilities 50.0...
The Balance Sheet and the Income Statement for ABC Manufacturing Corporation are as follows: DATA (All...
The Balance Sheet and the Income Statement for ABC Manufacturing Corporation are as follows: DATA (All amounts in SAR unless otherwise indicated, all sales are on credit and no hard keys.) Balance Sheet: ABC Corporation Balance Sheet Other current assets Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets LIABILITIES (DEBT) AND EQUITY Accounts payable Short-term notes payable Total current liabilities Long-term debt Total liabilities Common stock (par & paid in capital) Retained earnings Total common...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for...
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2016. INCOME STATEMENT OF QUICK BURGER CORP., 2016 (Figures in $ millions) Net sales $ 27,584 Costs 17,586 Depreciation 1,419 Earnings before interest and taxes (EBIT) $ 8,579 Interest expense 534 Pretax income 8,045 Taxes 2,816 Net income $ 5,229 BALANCE SHEET OF QUICK BURGER CORP., 2016 (Figures in $ millions)   Assets 2016 2015 Liabilities and Shareholders' Equity 2016 2015 Current assets Current liabilities...