ACCOUNTING 502 WEEK 6 DISCUSSION 1 QUESTIONS AND ANSWERS

ACC 502 Week 6 Discussion 1

Find the financial statements of a publicly traded company and review its liability section of the balance
sheet. What liabilities are included? What is the mix of current and long-term liabilities? What is the
company’s current ratio and debt ratio, and what do these ratios tell us about the company?



The balance sheet for Target Corporation lists the following liabilities (NASDAQ, 2016): Accounts
Payable, Short-term Debt/Current Portion of Long-term Debt, Other Current Liabilities, Long-term Debt,
Other Liabilities, Deferred Liability Charges, Miscellaneous Stocks, and Minority Interest. There seems to
be a slight mix of Current Liabilities ($12,622,000) and Long-term Liabilities ($14,683,000). Target’s listed
Current Ratio is at 112%, and its Debt Ratio is .39 (Total Debt/Total Assets = $15,651,000/$40,262,000).
Target’s Debt-to-Equity Ratio is 2.1 (Total Liabilities/Total Equity = $27,305,000/$12,957,000), which
means that the company is financing their assets mostly with debt, rather than equity.

NASDAQ. (2016, June 23). TGT company financials. Retrieved from:
http://www.nasdaq.com/symbol/tgt/financials?query=balance-sheet