SEC 10K Paper on Target - Assignment Example

The corporate headquarters of the company are located in and around Minneapolis, Minnesota - United States, and Mississauga, Ontario- Canada. The financial statements of Target Company to be analyzed are as at February 1, 2014 and February 2, 2013 and the consolidated results of their operations and their cash flows for each of the three years in the period ended February 1, 2014 were audited by Ernst & Young LLP, an independent registered public accounting firm on February 14, 2014. Profitability: Target Company reported the lowest profits of $ 1,971 in 2013 compared to $ 2,999 and $ 2,929 in 2012 and 2011 respectively.

The company incurred huge investments in Canada whose returns was much less than the costs.. Its U.S segment reported profits that seems to have cushioned the company’s consolidated income. Long-Term Debt: Target has a long-term debt worth $ 12,622 million as at February 1, 2014. Types of long-term debts: notes, debentures. Long-term debts decreased in 2013 as compared to $ 14,654 million in 2012. Target Company suffers from poor credit rating. Retained Earnings: Beginning balance is $ 13,155 million and ending balance is $ 12,599.

The retained earnings increased because of repurchasing of stock and also, part of the dividends declared was not paid. Target Company paid dividends worth $ 1006 million. Statement of Cash Flows: Ending balance is $ 6520 million. The cash balance increased due to the firm’s increased operations both in Canada and U.S investors always prefer investing in firms with prospective higher returns and potential to faster growth. Fast growing firms often indicate a net income but have their cash held in accounts receivable or depend too heavily on bank financing.

This is implied by the items falling under investing activities of the cash flow statement. Our company always has a surplus cash budget. In summary, sales increased showing a positive