Heres the Link to the Target 2016 annual report httpscorpora

Here\'s the Link to the Target 2016 annual report- https://corporate.target.com/annual-reports/pdf-viewer-2016?cover=28067&parts=28073

On page 32 of the annual report is Target Income statement (called the Consolidated Statements of Operations). On page 34 is the Balance Sheet (called the Consolidated Statements of Financial Position).

Note: the Balance Sheet ending date for current Fiscal Year (FY) 2016 is January 28, 2017. The Balance Sheet ending date for prior FY 2015 is January 30, 2016.

Requirements:  Answer the following questions using Target 2016 Annual Report. You may work with another student but the work must be on your own. Use correct formatting and proper grammar.  The financial reports are stated in millions of dollars. When possible, please write answers exactly as they appear in the financial statements. Include commas when writing dollar amounts.  Do not include dollar signs.  Do not include the word million.  Do not include the % sign.

Question 1. How much did Target’s cash and cash equivalents balances (including short-term investments) change during the current FY?

Answer: $______million

Question 2. What were the beginning and ending cash and cash equivalents balances (including short-term investments)?

Answer: Beg = $  million

Answer: End = $  million

Question 3. Review Note 11 Cash Equivalents, in the Notes to Consolidated Financial Statements. What type of instruments does Target consider to be cash equivalents?

Please type exactly as it appears in the Note.

Question 4. Determine the cash ratio for the current FY. Round to two decimal places. (Subtract short-term investments from the cash and cash equivalents balance on the balance sheet.)

Answer: _____

Solution

Answer 1

change during the current FY = $(1534) million

Cash and cash equivalents (current year ) = 2512

Cash and cash equivalents (prior year) = 4046

Difference= 2512-4046=-1534

Answer 2

Beginning cash and cash equivalents = $4046 million

Ending cash and cash equivalents= $2512 million

Answer 3

Cash equivalents include highly liquid investments with an original maturity of three months or less from the time of purchase. It also include amounts due from third-party financial institutions for credit and debit card transactions. These receivables typically settle in less than five days.

Answer 4

Cash ratio = cash and cash equivalents (excluding short term investments) / current liabilities = (2512-1110) / 12708 = 1402 / 12708 = 0.11