Response to the following:
Use the Target Corporation Form 10-K to answer the following questions related to Target's 2017 Fiscal Year. Note that Target's Fiscal Year ends in late January or early February, so the 2017 Fiscal Year ends February 3, 2018. You will need to use the financial statements as well as notes to the financial statements to answer the questions. Show your calculations.
a) What percentage of Target's total revenues end up as net earnings? (Hint: use the Statement of Operations)
b) What percentage of Target's sales go to pay for the costs of the goods being sold? (Hint: use the Statement of Operations)
c) Calculate the Cost of Sales and the Gross Margin as a percentage of Target's Sales for the 2017, 2016 and 2015 Fiscal Years. Comment on the changes and the significance of changes in these ratios. (Hint: use the Statement of Operations)
d) What costs does Target include in its Cost of Sales account? (Hint: use the Notes to the Financial Statements of the 10-K)
e) When does Target recognize revenue from the sale of gift cards? (Hint: use the Notes to the Financial Statements of the 10-K)
Attachment:- Consolidated Statements of Operations.xlsx