Running head: STATEMENT ANALYSIS1Statement Analysis: TargetHeather Ann BeecherACC 205: Principles of Accounting IProfessor William BlixSeptember 13, 2018
STATEMENT ANALYSIS2IntroductionIn a statement analysis, it is critical to pay close attention to the details. One wrongnumber can create an accounting nightmare. Thankfully for many organizations, there is a basicplan to follow when creating financial statements. These statements include a balance sheet, anincome statement, and a financial ratio statement. For Target Corporation, they have had a rockycouple of years with hopes to turn it around within the 2018-2019 timeframe. The financialhealth of a company is pertinent to their success. For retail stores, like Target, being a step aheadof the competition is the biggest upsurge a company can have. Presented is the financialstatement analysis of Target Corporation, showing the trends for the past three years and apossible recommendation for investors.Company OverviewStarting in the suburbs of Roseville, Minnesota, Target Corporation opened their firststore in 1962. Their main focus of sales at the time was selling competitively priced items in anenvironment most expedient for consumers. Target Corporation is the second largest generalmerchandise retailer in America (Target Corporate, 2018). Target is also known for theircompetitive pricing and outstanding brand promises with their famous slogan, “Expect More.Pay Less” (para. 7). Target sells a bit of everything from clothing to household items to aMarketplace and even an in-store Pharmacy.Two of Target’s biggest competitors include none other than Walmart Stores, Inc. andCostco Wholesale (Kuang, 2018, para. 1). These types of retail stores supply “a broad range of
STATEMENT ANALYSIS3products and must maintain complex inventory management systems” (para. 3). Target, as wellas Costco, specialize in high-quality items targeting high income families. The biggest positiveTarget has is the overall customer satisfaction. When entering any Target store, there is a warmthin the air, friendly greeters throughout the store, and offering the latest trends and fashion to theirconsumers and potential consumers.