Acct 2400 Financial Statements Assignment – Part 2 Spring 2019 Page 1 of 6 Name: This assignment is due at the beginning of class on Tue. May 7 … late submissions (even within the class period on the...

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Answer To: Acct 2400 Financial Statements Assignment – Part 2 Spring 2019 Page 1 of 6 Name: This assignment is...

Ashish answered on May 07 2021
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Running Head: Analysis of Target Corporation and PayPal Holding Inc.
Analysis of Target Corporation and PayPal Holding Inc
Student Name:
Student ID:
7th May 2019
Solution-1
I choose PayPal Holding Inc. to analyze in addition to Target Corporation.
Solution-2
The Ernst
& Young, LLP is Target’s independent audit firm.
Solution-3
The independent auditors issue the unqualified opinion on Target’s financial statements. The audit is completed as per the PCAOB guidelines. The corporation financial statement is fairly presented about the financial position.
Solution-4
Excel Attached
Solution-5
     
    Target (fiscal 2017, ended Feb. 3, 2018)
    PayPal Holding Inc. (2018)
     
     
     
    Gross margin percentage (Gross Profit / Net sales)
    29.00%
    46%
    Net margin percentage (Net Income / Net sales)
    4.00%
    13%
Calculation:
Target Corporation (as per excel)
Gross margin percentage (PayPal Holding Inc.) = Gross Profit / Net sales
Gross margin percentage (PayPal Holding Inc.) = $7,114 / $15,451
Gross margin percentage (PayPal Holding Inc.) = 46%
Net margin percentage (PayPal Holding Inc.) = (Net Income / Net sales)
Net margin percentage (PayPal Holding Inc.) = $2,057/$15,451
Net margin percentage (PayPal Holding Inc.) = 13%
Solution-6
According to above analysis the PayPal Holding Inc. is much better position in terms of profitability in comparison of Target Corporation. Because the Gross Margin percentage and Net Margin percentage are higher of PayPal Holding Inc. in comparison of Target Corporation.
Solution-7
Excel Attached
Solution-8
The Target corporation higher revenue generation in the year 2015 but in 2016 the corporation revenue is decreased and in the year 2017 the revenue again increased. Therefore, the target corporation overall revenue is increased by year 2017.
Solution-9
The Target Corporation higher cost of sales in the year 2015 but in 2016 the corporation cost of sales is decreased and in the year 2017 the cost of sales again increased. Therefore, the target corporation overall cost of sales is increased by year 2017.
Solution-10
The Target Corporation higher selling, general & administrative expenses in the year 2015 but in 2016 the corporation selling, general & administrative expenses is decreased and in the year 2017 the selling, general & administrative expenses again increased. Therefore, the target corporation overall selling, general & administrative expenses are increased by year 2017.
Solution-11
The Target Corporation income statement shows the higher net income in the year 2015 but in 2016 the corporation net income is decreased and in the year 2017 net income again increased. Therefore, the target corporation overall net income is increased by year 2017.
Solution-12
    TARGET...
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