Question

Following is the balance sheet for Target Corporation. Prepare Target’s common-size balance sheets as of February 3, 2018 and January 28, 2017.

($ millions)	February 3, 2018	January 28, 2017
Assets
Cash and cash equivalents	$2,643	$2,512
Inventory	8,657	8,309
Other current assets	1,264	1,169
Total current assets	12,564	11,990
Property and equipment, net	25,018	24,658
Other noncurrent assets	1,417	783
Total assets	$38,999	$37,431
Liabilities and shareholders’ investment
Accounts payable	$8,677	$7,252
Accrued and other current liabilities	4,254	3,737
Current portion of long-term debt and notes payable	270	1,718
Total current liabilities	13,201	12,707
Long-term debt	11,317	11,031
Deferred income taxes	713	861
Other noncurrent liabilities	2,059	1,879
Total shareholders’ investment	11,709	10,953
Total liabilities and shareholders’ investment	$38,999	$37,431

Note: Round your answers to one decimal place (ex: 0.0715 = 7.2%).

TARGET CORPORATION Common-Size Balance Sheets
	2018	2017
Cash and cash equivalents	Answer	Answer
Inventory
Other current assets
Total current assets
Property and equipment, net
Other noncurrent assets
Total assets
Accounts payable
Accrued and other current liabilities
Current portion of long-term debt and notes payable
Total current liabilities	Answer	Answer
Long-term debt	Answer	Answer
Deferred income taxes	Answer	Answer
Other noncurrent liabilities	Answer	Answer
Total shareholders’ investment	Answer	Answer
Total liabilities and shareholders’ investment	Answer	Answer

Answer 1

Common-Size Balance Sheet:

A common size balance sheet may be a refined version of the record itself, but also includes each single item as a percentage of total assets, liability and equity aside from the traditional numeric value. A Common-Size balancesheet scales down each element of the asset composition as per what proportion they contribute to the entire assets (or liability and equity). it's used primarily for analysis and peer comparison.