Annual Report Project for Target Corporation ( FY2015)
Use the Target Corporation’s Form 10-K to complete the case. You will be working with Target’s FY 2015 (year ended January 30, 2016) and FY 2014 Reports. Target’s Form 10-K is available on the company’s website or through the SEC’s EDGAR database. Appendix A in your text provides instructions for using the EDGAR database.
Section 1 - (2 points each - 60 points)
Questions 1-30 of the final case are a MC/Matching Test using the Comprehensive Case Exam Link under the Module 8 or 15 Task Information.
The following information contains the directions for the problem portion of the Comprehensive Case Exam: (190 points)
Section 2 - (69 points total)
Questions 31 - 51 are presented below. 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. Please use your homework and information in the assigned chapters to complete the case.
31.Using the Excel template, compute common-size income statements (vertical analysis) for 2015 and 2014. In common-size income statements, net sales is 100% and every other number is a percentage of sales (you can stop at net earnings). (12pts)
32.Using the common-size (vertical) income statements, identify the significant trends, and compare to the industry standards included in the template (source: BizStats). (3 pts)
33.Using the Excel template, compute common-size (vertical analysis) balance sheets at the end of fiscal 2015 and 2014. In common-size balance sheets, total assets is 100% and every other number is a percentage of total assets. Be sure to complete the entire balance sheet. (15 pts)
34.Using the common-size (vertical) balance sheet, identify the significant trends, and compare to the industry standards included in the template (source: BizStats). (3 pts)
35.Using Excel, prepare a horizontal analysis of the income statement comparing 2015, 2014 and 2013 (you can stop at net earnings). (15 pts)

36.Using the horizontal analysis of the income statement, identify the significant trends. (3 pts)

37.Using Excel, prepare a horizontal analysis of the balance sheet comparing 2015, 2014 and 2013. (15 pts)

38.Using the horizontal analysis of the balance sheet, identify the significant trends. (3 pts)

Section 3 - (45 pts)

For numbers 39-51, identify the appropriate formula and calculate the following ratios for 2015and 2014**AND analyze the results.(Market performance ratios (earnings per share, book value per share, price-earnings ratio, and dividend yield are already computed and included in the template.)

NOTE: You will need to use the 2014 reports in order to calculate averages where applicable.

Measures of liquidity (15 pts)

39. Working capital

40. Current ratio

41. Quick ratio

42. Inventory turnover

43. Average days to sell inventory

Measures of solvency (15 pts)

44. Debt to assets

45. Debt to equity

46. Number of times interest earned

47. Plant assets to long-term liabilities

Measures of profitability (15 pts)+5

48. Net margin (return on sales)

49. Asset turnover

50. Return on investment

51. Return on equity

Section 4– Budgeting (25 points)

  1. Calculate the percentage change for each of the following categories of revenues and expenses for FY 2010 through FY 2014.
  2. Calculate the average percentage change
  3. Use the FY 2014 data and the average percentage change calculated in 2 to prepare a budget for FY 2015
  4. Compare actual amounts from FY 2015 to the budget

Section 5– Analysis – (50 points)

Prepare an analytic report on your findings in Sections 2 – 4.

Section 6 - (1 point)

You are required to have a proper APA cover sheet