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Running head: STATEMENT ANALYSIS 1 Statement Analysis: Target Heather Ann Beecher ACC 205: Principles of Accounting I Professor William Blix September 13, 2018
STATEMENT ANALYSIS 2 Introduction In a statement analysis, it is critical to pay close attention to the details. One wrong number can create an accounting nightmare. Thankfully for many organizations, there is a basic plan to follow when creating financial statements. These statements include a balance sheet, an income statement, and a financial ratio statement. For Target Corporation, they have had a rocky couple of years with hopes to turn it around within the 2018-2019 timeframe. The financial health of a company is pertinent to their success. For retail stores, like Target, being a step ahead of the competition is the biggest upsurge a company can have. Presented is the financial statement analysis of Target Corporation, showing the trends for the past three years and a possible recommendation for investors. Company Overview Starting in the suburbs of Roseville, Minnesota, Target Corporation opened their first store in 1962. Their main focus of sales at the time was selling competitively priced items in an environment most expedient for consumers. Target Corporation is the second largest general merchandise retailer in America (Target Corporate, 2018). Target is also known for their competitive 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 a Marketplace and even an in-store Pharmacy. Two of Target’s biggest competitors include none other than Walmart Stores, Inc. and Costco Wholesale (Kuang, 2018, para. 1). These types of retail stores supply “a broad range of
STATEMENT ANALYSIS 3 products and must maintain complex inventory management systems” (para. 3). Target, as well as Costco, specialize in high-quality items targeting high income families. The biggest positive Target has is the overall customer satisfaction. When entering any Target store, there is a warmth in the air, friendly greeters throughout the store, and offering the latest trends and fashion to their consumers and potential consumers.

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