Statement of Changes in Financial Position
A. From the perspective of an investor, determine whether or notyou would invest in Target Corporation based onthe company's statement of changes in financial position (SCFP).Support your opinion.
B. Review Target Corporation's SCFP for any concerns that mayneed to be addressed. As controller of Target Corporation, preparea memo to your CEO, giving a summary report for possiblerecommendations.
Cash flow statement
Period Ending
1/28/2017
1/30/2016
Cash Flow Statement
Net Income
$2,737,000
$3,363,000
Cash Flow-Operating Activities
Depreciation
$2,298,000
$2,213,000
Net Income Adjustments
$508,000
($812,000)
Changes in Operating Activities
Accounts Receivable
$0
$0
Changes in Inventories
$293,000
($316,000)
Other Operating Activities
$36,000
$227,000
Liabilities
($543,000)
$579,000
Net Cash Flow-Operating
$5,436,000
$5,958,000
Cash flows-Investing Activities
Capital Expenditures
($1,547,000)
($1,438,000)
Investments
$28,000
$24,000
Other Investing Activities
$46,000
$1,922,000
Net Cash Flows-Investing
($1,473,000)
$508,000
Cash Flows-Financing Activities
Sale and Purchase of Stock
($3,485,000)
($3,183,000)
Net Borrowings
($664,000)
($85,000)
Other Financing Activities
$0
$0
Net Cash Flows-Financing
($5,497,000)
($4,630,000)
Effect of Exchange Rate
$0
$0
Net Cash Flow
($1,534,000)
$1,836,000
Financial Ratios
Liquidity Ratios
Current Ratio
94%
112%
Quick Ratio
29%
44%
Cash Ratio
20%
32%
Profitability Ratio
Gross Margin
30%
30%
Operating Margin
7%
7%
Pre-Tax Margin
6%
7%
Profit Margin
4%
5%
(www.nasdaq.com)
Statement of Changes in Financial Position
A. From the perspective of an investor, determine whether or notyou would invest in Target Corporation based onthe company's statement of changes in financial position (SCFP).Support your opinion.
B. Review Target Corporation's SCFP for any concerns that mayneed to be addressed. As controller of Target Corporation, preparea memo to your CEO, giving a summary report for possiblerecommendations.
Cash flow statement
Period Ending | 1/28/2017 | 1/30/2016 | |
Cash Flow Statement | |||
Net Income | $2,737,000 | $3,363,000 | |
Cash Flow-Operating Activities | |||
Depreciation | $2,298,000 | $2,213,000 | |
Net Income Adjustments | $508,000 | ($812,000) | |
Changes in Operating Activities | |||
Accounts Receivable | $0 | $0 | |
Changes in Inventories | $293,000 | ($316,000) | |
Other Operating Activities | $36,000 | $227,000 | |
Liabilities | ($543,000) | $579,000 | |
Net Cash Flow-Operating | $5,436,000 | $5,958,000 | |
Cash flows-Investing Activities | |||
Capital Expenditures | ($1,547,000) | ($1,438,000) | |
Investments | $28,000 | $24,000 | |
Other Investing Activities | $46,000 | $1,922,000 | |
Net Cash Flows-Investing | ($1,473,000) | $508,000 | |
Cash Flows-Financing Activities | |||
Sale and Purchase of Stock | ($3,485,000) | ($3,183,000) | |
Net Borrowings | ($664,000) | ($85,000) | |
Other Financing Activities | $0 | $0 | |
Net Cash Flows-Financing | ($5,497,000) | ($4,630,000) | |
Effect of Exchange Rate | $0 | $0 | |
Net Cash Flow | ($1,534,000) | $1,836,000 | |
Financial Ratios | |||
Liquidity Ratios | |||
Current Ratio | 94% | 112% | |
Quick Ratio | 29% | 44% | |
Cash Ratio | 20% | 32% | |
Profitability Ratio | |||
Gross Margin | 30% | 30% | |
Operating Margin | 7% | 7% | |
Pre-Tax Margin | 6% | 7% | |
Profit Margin | 4% | 5% |
(www.nasdaq.com)
