Use the Target Corporation’s Form 10-K to complete the case. You will be working withTarget’s2018(reports information for periodsend 2/2/2019and 2/3/2018) and2017(for limited use...

Use the Target Corporation’s Form 10-K to complete the case. You will be working withTarget’s2018(reports information for periodsend 2/2/2019and 2/3/2018) and2017(for limited use only)AnnualReports.You can pulltheAnnual Reports from this link:https://investors.target.com/annual-reports.

Target’s Form 10-K is available on the company’s website or through the SEC’s EDGAR databasehere:https://www.sec.gov/edgar/searchedgar/companysearch.html

How to use EDGAR:https://www.sec.gov/oiea/Article/edgarguide.html

Access Project Excel template from Canvas

Access ProjectWritten Analysis template from Canvas

Section1.Financial Statement Analysis(35points)

Please be sure to show all support for your work. You will be using the following sections of the annual report: MD&A, consolidated financial statements and notes to the financial statements.

Complete the following tabs in the Excel template:

1. 
   

   Vertical Analysis-Income Statements- only use the 2018 Annual report

   
   

2. 
   

   Vertical Analysis – Balance Sheets- only use the 2018 Annual report

   
   

3. 
   

   Horizontal Analysis - Income Statements- the 2017 annual report will be used for 2016 figures only. 2018 used for all other figure

   
   

4. 
   

   Horizontal Analysis–Balance Sheets- the 2017 annual report will be used for 2016 figures only. 2018 used for all other figure

   
   

Section2.Ratio Analysis(35points)

Identify the appropriate formula andcalculate the following ratios forthe most recent twofiscal years(Market performance ratios (earnings per share, book value per share, price-earnings ratio, and dividend yield are already computed andincluded in the template.)

NOTE: You will need to use thepreviousyear’sreports in order to calculate averages where applicable.

Complete the followingratiosin the Excel template:- use the 2018 annual report for all figures except any 2016 B/S figures that might be needed for averaging.

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  Measures of liquidity

  
  

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  Working capital

  
  


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  Current ratio

  
  


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  Quick ratio

  
  


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  Inventory turnover

  
  

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  Average days to sell inventory

  
  

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  Measures of solvency

  
  

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  Debt to assets

  
  


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  Debt to equity

  
  


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  Number of times interest earned

  
  

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  Plant assets to long-term liabilities

  
  

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  Measures of profitability

  
  

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  Net margin (return on sales)

  
  


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  Asset turnover

  
  


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  Return on investment

  
  

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  Return on equity

  
  

Section3.Budgeting(20 points)

In this section you will use the2017 Annual reportfor the 5 years of budget information needed. The summary information needed is located within the first 5 pages of the annual report. You will use the 2018 Annual report for the 2018 actual information only.

1. 
   

   Calculate thepercentage change for each of the following categories of revenues and expensesthe recent two fiscal years.

   
   

2. 
   

   Calculate the average percentage change

   
   

3. 
   

   Use themost recent two yearsdata and the average percentage change calculated inSection 1to prepare a budget forlast year.

   
   

Part II. Written Analysis(90 Points)

Complete the following components in your written analysis template

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  Cover Page

  
  

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  Section1.Accounting Treatment(18 points)

  
  

For this section, analyze and explain in detail the accounting treatment of the following areas for Target using the most recent annual report and disclosures.

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  Fixed Assets

  
  


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  Intangible Assets

  
  


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  Liabilities (long term and short)

  
  

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  Section 2.Trend Analysis(18 points)

  
  

• 
  

  Using thevertical analysis of theincome statements, identify the significant trends

  
  


• 
  

  Using thevertical analysis of thebalance sheets, identify the significant trends

  
  


• 
  

  Using the horizontal analysis of the income statements, identify the significant trends

  
  


• 
  

  Using the horizontal analysis of thebalancesheets, identify the significant trends

  
  

• 
  

  Section 3.Ratio Trend Analysis(18 points)

  
  


• 
  

  Using the ratio analysis, identify the trends in ratios between the last two yearsas well as compare to the industry information accessed from the IBIS database.

  
  


• 
  

  Also analyze ratios and figures based on the disclosures in the annual reportas evidence to the noticeable trends

  
  

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  Section 4.Budgeting Analysis(18 points)

  
  

• 
  

  Compare actual amounts from last year to the budget you have createdfor sales. Give an analysis on if Target exceeded budgeted sales.Ifso,explain the contributing factors for this. Ifsales did not exceed what was budgeted, explain the contributing factors.

  
  


• 
  

  Compare actual amounts from last year to the budget you have createdfor expenses. Give an analysis on if Target exceeded budgetedexpenses. If so, explain the contributing factors for this. Ifexpensesdid not exceed what was budgeted, explain the contributing factors.

  
  

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  Conclusion

  
  

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  Reference List

  
  

Mechanics(18 points)

All components should be prepared in entirety

Be sure to check your analysis for all spelling, grammar and punctuation issues prior to submission.

Analysis should be in a professional tone

Reference Listand in-text citations should be in APA format