Question

Statement of Changes in Financial Position

A. From the perspective of an investor, determine whether or not you would invest in Target Corporation based on the company's statement of changes in financial position (SCFP). Support your opinion.

B. Review Target Corporation's SCFP for any concerns that may need to be addressed. As controller of Target Corporation, prepare a memo to your CEO, giving a summary report for possible recommendations.

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)

Answer 1

1..The net income of the company has been reduced the liabilities of the co.has been increased.the investments has only been incresed by $4000 only and the net borrowings of the co.has increased more than 50%

so by overall view i would suggest not to invest in this co. and profit margin also reuces by 20%..

2..MEMO

MEMORAMDUM TO: CEO FROM : CONTROLLER OF TARGET CORPORATION DATE : 31/1/2017 SUBJECT : RECOMMENDATIONS As we see the financial report of the previous year and ths year there is alot of changes in the report .i would like to recommend on this.. As our companies borrowigs should be reduced as it is very much more from the last year.as boorrowings are more and investing activities is reduced it should be more. Sale and Purchased stock should be increased.. I will be glad to discuss these recommendations with you later and follow through on any decisions u make.This will make our co. more sustainable and profit margin will also incresed.. YOURS FAITHFULLY, CONTROLLER..