2024 – The Balance Sheet Referencing this week s readings and lecture what information is provided in the balance sheet What is

The Balance Sheet  
  
Referencing this week’s readings and lecture, what information is provided in the balance sheet? What is a common-sized balance sheet and how do you create one? For your final project company, does anything stand out on the balance sheet? 

1. Understanding the Notes to the Balance Sheet
    
   Your friend, Liz, loves to shop at Target and is now interested in investing in the company.  Tom, another friend, has told her that Target’s debt structure is risky with obligations of nearly 74% of total assets.  Liz sees that debt on the balance sheet is 65% of total assets and is confused by Tom’s comment.  Write an explanation to Liz discussing the debt structure of Target and why Tom thinks Target is risky.  Be sure to explain clearly what information appears on financial statements, as well as what information does not appear directly on the financial statements. Use the information below in your discussion. 

   At fiscal year-end February 2, 2008, Target Corporation had the following assets and liabilities on its balance sheet (in millions):

Current liabilities	$11,782
Long-term debt	15,126
Other liabilities	2,345
Total assets	44,560