Week 2 – Online assignment help tutors – Discussion 2
Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Online assignment help tutors – Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.
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. Ace my homework – 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 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers, 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
Target reported the following information on leases in the notes to the financial statements:
Total rent expense was $165 million in 2007, $158 million in 2006 – Write a paper; Professional research paper writing service – Best essay writers, and $154 million in 2005, including percentage rent expense of $5 million in 2007, 2006 – Write a paper; Professional research paper writing service – Best essay writers, and 2005. Most long-term leases include one or more options to renew, with renewal terms that can extend the lease term to more than 50 years. Certain leases also include options to purchase the leased property.
Future minimum lease payments required under non-cancellable lease agreements existing at February 2, 2008 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers, were:
Future Minimum Lease Payments (in Millions)
Operating Leases
Capital Leases
2008 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers
$ 239
$ 12
2009
187
16
2010 – Essay Writing Service: Write My Essay by Top-Notch Writer
173
16
2011
129
16
2010 – Essay Writing Service: Write My Essay by Top-Notch Writer
123
17
After 2010 – Essay Writing Service: Write My Essay by Top-Notch Writer
2, 843
155
Total future minimum lease payments
$3694 (a)
$232
Less: Interest (b)
(105)
Present value of minimum capital lease payments
$127 (c)
(a) Total contractual lease payments include $1,721 million related to options to extend lease terms that are reasonably assured of being exercised, and also include $98 million of legally binding minimum lease payments for stores that will open in 2008 – Affordable Custom Essay Writing Service | Write My Essay from Pro Writers or later.
(b) Calculated using the interest rate at inception of each lease.
(c) Get custom essay samples and course-specific study resources via course hero homework for you service – Include s current portion of $4 million.
Respond to at least two of your classmates’ posts.
