Purchase Solution

Common size income statement

Not what you're looking for?

Ask Custom Question

Calculate the following 14 ratios: current ratio, quick ratio, inventory turnover, average collection period, average payment period (use cost of goods in place of purchases), total assets turnover, debt ratio, times interest earned ratio, gross profit margin, operating profit margin, net profit margin, return on total assets, return on common equity, and price/earnings ratio.

Prepare a common size income statement for the latest two years at Target. This needs to be done using an Excel spreadsheet and show ALL calculations for the ratios (do not just show the answer, show what numbers were used to calculate the ratio). Here is the link for the two years of annual reports that need to be used.

http://investors.target.com/phoenix.zhtml?c=65828&p=irol-reportsAnnual

Purchase this Solution
Solution Summary

This solution calculates the following fourteen ratios, based on the finance reports of Target for the past two years: current ratio, quick ratio, inventory turnover, average collection period, average payment period (use cost of goods in place of purchases), total assets turnover, debt ratio, times interest earned ratio, gross profit margin, operating profit margin, net profit margin, return on total assets, return on common equity, and price/earnings ratio. Based on those, a solution presented in Excel shows how to prepare a common size income statement.

Solution discusses the 14 ratios listed on the attached file and prepare a common-sized income statement for the latest two years at Target.

Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Operations Management

This quiz tests a student's knowledge about Operations Management

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Introduction to Finance

This quiz test introductory finance topics.

View More Free Quizzes
Related BrainMass Solutions

  • Common Size Income Statement: Red Lobster

    This solution provides you with an explanation of what a common size income statement is and how it is prepared.

  • Common Size and Ratios

    A common size income statement expresses each income statement item as a percentage of sales. The common size income statement is useful in identifying trends over time within the company, and comparing costs, for example, across companies.

  • Common-size income statements and financial revenue

    16417 Common-size income statements and financial revenue I am to create a common-size income statement for Ford Motor Co.

  • Common size statement for three years of data

    412349 Common size statement for three years of data See attached file. Please prepare the common size statement of the attached Income statement for three years (2010, 2009, 2008).

  • Process for Developing the Common Size Statements

    Process of developing common size statements: In case of common size analysis of income statement, income statement of the year for which analysis needs to be done should be taken.

  • Common size statement value

    379603 Common Size Statement Value 18. A firm has sales of $1,500, net income of $100, total assets of $1,000, and total equity of $700. Interest expense is $50. What is the common-size statement value of the interest expense?

  • Common-size presentation

    In this case, the common-size income statement would present the sales expense as 2.5% ($5,000/$200,000) and 2.0% ($10,000/$500,000).

  • I have the five ratios to conduct ratio analysis. I just nee

    - The common-size income statement and balance sheet are used for vertical and horizontal analysis, also called trend analysis. The regular income statement and balance sheet would be used for ratio analysis.

  • Common size income statement analysis

    267418 Common size income statement analysis . Select two stocks in an industry of your choice and perform a common size income statement analysis over a two-year period. Discuss which firm is more cost-effective.

  • benefits of preparing and using a common size balance sheet and/or income statement

    72166 Benefits of Common Size Balance Sheets and Income Statements What are the benefits of preparing and using a common size balance sheet and/or income statement? Why would you use this in your analysis?

View More Related Solutions