Case study –Target Corporation PART I: 1. Using the template provided, prepare a common-size Consolidated Statements of Financial Position; 1. Using the template provided, prepare a common-size...

Balance Sheet (1)
    
        TARGET CORPORATION
        CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
        [ACTUAL CASE DATA: $ in Millions]
                    2007    2006
        ASSETS
        Current Assets:
            Cash and cash equivalents        2,450    813
            Short-term investments        - 0    - 0
            Total cash and short-term investments        2,450    813
            Accounts receivable, net        8,054    6,194
            Inventories, net        6,780    6,254
            Current deferred taxes        556    427
            Other current assets        1,066    1,018
            Total current assets        18,906    14,706
            Property, plant, and equipment        31,982    28,381
            Less: accumulated depreciation        (7,887)    (6,950)
            Net property, plant, and equipment        24,095    21,431
            Long-term investments        - 0    - 0
            Goodwill, net        60    60
            Other intangibles, net        148    152
            Other deferred taxes        - 0    - 0
            Other assets        1,351    1,000
            Total assets        44,560    37,349
        LIABILITIES
        Current Liabilities:
            Accounts payable        6,721    6,575
            Short-term debt        - 0    - 0
            Current portion of long-term debt        1,964    1,362
            Accrued liabilities        3,097    3,180
            Income taxes payable        - 0    - 0
            Other current liabilities        - 0    - 0
            Total current liabilities        11,782    11,117
            Long-term debt        15,126    8,675
            Deferred income taxes payable        470    577
            Other deferred liabilities        - 0    - 0
            Other liabilities        1,875    1,347
            Total liabilities        29,253    21,716
            Minority interest        - 0    - 0
        STOCKHOLDERS' EQUITY
            Preferred stock        - 0    - 0
            Common stock, par value plus additional paid-in capital        2,724    2,459
            Retained earnings (accumulated deficit)        12,761    13,417
            Treasury stock        - 0    - 0
            Accumulated other comprehensive income (loss)        (178)    (243)
            Other stockholders' equity        - 0    - 0
            Total stockholders' equity        15,307    15,633
            Total liabilities and stockholders' equity        44,560    37,349
44,560
37,349
Balance Sheet (2)
    
        TARGET CORPORATION
        CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
        [COMMON SIZE FINANCIAL STATEMENT: $ in Millions]
                    2007    2006
        ASSETS
        Current Assets:
            Cash and cash equivalents        5.5%    2.2%
            Short-term investments        0.0%    0.0%
            Total cash and short-term investments        5.5%    2.2%
            Accounts receivable, net        18.1%    16.6%
            Inventories, net        15.2%    16.7%
            Current deferred taxes        1.2%    1.1%
            Other current assets        2.4%    2.7%
            Total current assets        42.4%    39.4%
            Property, plant, and equipment        71.8%    76.0%
            Less: accumulated depreciation        -17.7%    -18.6%
            Net property, plant, and equipment        54.1%    57.4%
            Long-term investments        0.0%    0.0%
            Goodwill, net        0.1%    0.2%
            Other intangibles, net        0.3%    0.4%
            Other deferred taxes        0.0%    0.0%
            Other assets        3.0%    2.7%
            Total assets        100.0%    100.0%
        LIABILITIES
        Current Liabilities:
            Accounts payable        15.1%    17.6%
            Short-term debt        0.0%    0.0%
            Current portion of long-term debt        4.4%    3.6%
            Accrued liabilities        7.0%    8.5%
            Income taxes payable        0.0%    0.0%
            Other current liabilities        0.0%    0.0%
            Total current liabilities        26.4%    29.8%
            Long-term debt        33.9%    23.2%
            Deferred income taxes payable        1.1%    1.5%
            Other deferred liabilities        0.0%    0.0%
            Other liabilities        4.2%    3.6%
            Total liabilities        65.6%    58.1%
            Minority interest        0.0%    0.0%
        STOCKHOLDERS' EQUITY
            Preferred stock        0.0%    0.0%
            Common stock, par value plus additional paid-in capital        6.1%    6.6%
            Retained earnings (accumulated deficit)        28.6%    35.9%
            Treasury stock        0.0%    0.0%
            Accumulated other comprehensive income (loss)        -0.4%    -0.7%
            Other stockholders' equity        0.0%    0.0%
            Total stockholders' equity        34.4%    41.9%
            Total liabilities and stockholders' equity        100.0%    100.0%
100.0%
100.0%
Income Statement (1)
    
        TARGET CORPORATION
        CONSOLIDATED STATEMENTS OF OPERATIONS
        [ACTUAL CASE DATA: $ in Millions]
                    2007    2006    2005
            Sales        61,471    57,878    51,271
            Credit Card...