Financing and Investing

The Target Corporation is focused on ways to build their legacy of the corporate social responsibility. Working together with team members, guest, suppliers and the community builds a superior outcome by which matters most by the Target leaders. Their purpose is to believe in great shopping, anytime and anywhere. The company culture builds a team of people with different backgrounds and unique points of view. As Target promotes an active citizen and good neighbor in our communities by which they give valuable time, talent and business strengths to growing our communities to a healthy and safer

This report will be based on the Target Corporation, and will consist of two sections: 1) long-term financing policy and capital structure, and 2) an acquisition analysis. The first section will include: Target's most recent long-term financing decision; an analysis of the economic, business, and competitive background in which the financing occurred; Target's book value and market value; possible changes that would occur to Target's finance policy and capital structure if it was forced to consider re-organization and bankruptcy strategies; and finally discuss Target's international investment and financing

Cash flow is one of the most important aspects of running any business whether large or small. It is one of the single most important reasons why many businesses fail, this does not matter whether how good a business is. Managing a cash flow therefore is vitally important in the smooth running survival and success of a business.

Target has a great organizational structure and there is no need to make any changes at this time. Since the company started they have managed to stay on task and on track with their plan for building a successful organization. From the President to the CEO, Target has managed to keep the lines of communication open and developing new and challenging skills that work for them. This company was established in 1902, however they have changed with the times, by turning a

The company I selected for this course is Target Corporation, whom is one of the major retailers in the United States. The company is headquartered out of Minneapolis Minnesota. Target vision or their purpose is “We fulfill the needs and fuel the potential of our guests. That means making Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional experiences- consistently fulfilling our expect more pay less brand promise” (Target, N.D.). Target’s main competitors are Walmart and Sears, with Walmart leading the group in several categories, Target over the years have been making strives innovating their leadership styles, marketing strategies and operations in regards to distribution, hiring, guest engagement and their store policies (coupons, returns and price matching).

Target Corporation is a leader in being transparent on corporate governance, shareholder reporting, and product innovation by bringing the industry together to find a solution, and product information dissemination to the community and citizens, particularly, the products consumers put in or on their body. By keeping it employee happy those who loves to come to work every day and help its customer, Target Corporation makes it a great workplace to work (CSR, 2014). It offers many health benefits, financial and educational assistance as part of its

The statement of cash flows is a relatively new statement. Focused on cash-basis accounting rather than accrual-basis, the purpose of this statement is to describe the effects of a company’s cash inflows and outflows. This paper will discuss the current standards for the statement of cash flows, the history of the statement, and if the direct method or indirect method is more advantageous for the users.

While financial statements can be quite extensive, it is important for companies to completely understand all aspects of their statements. In regards to the balance sheet, there are financial ratios that can be computed in order to determine the profitability, liquidity, and solvency of a company. Both Ford and Tesla are large car companies that have lots of assets. By examining the current ratio for both companies, accountants, investors and creditors can assess the liquidity and efficiency for Tesla and Ford to pay off their short-term liabilities with its current assets. The current ratio is a very significant measure tool as these short-term liabilities would be due within the next year. Thus, the companies have a limited time to acquire the funds necessary to pay off the liabilities. Current assets such as cash or cash equivalents can be easily liquidated. Typically, assets on the balance sheet are listed in order of easiest liquidity. If companies have large current assets, then they will be able

Jay needs to insure them that with time as people pay the cash account will increase and the company again will have more cash on hand. Also to ease their minds he may need to show the agreements he has with people on when they are supposed to pay and how much bad debt he has anticipated from those agreements.

The main purpose of the cash flow statement is to show the entrance and exit of cash, and whether the cash gained as a result of the company's operations activities, investing or financing activities. A cash flow statement of a healthy company would show that the density of cash entrance comes from its operating activities. The net entrance or exist of cash should be equal to the difference between beginning and ending balance of cash that appears in the balance sheet

　　Furthermore, in addition to the cash equivalent, the company’s net income from the most recent reporting period to the previous annual 2013-2014 reporting was 8,343,900. The balance as of December 31, 2014 was 20,563,300.00. This information is important to the potential creditors, investors, employees and so on because when these particular groups or organizations look to invest in a company they look at financial reports to be sure that it would be wise for them to invest to the corporation. There are plenty of organizations looking for businesses to invest in them but not all are trustworthy to receive the investments. I like to compare to individuals also. If a person is looking to get some type of loan, the bank will look at the person’s history with loans, credit history, employment history, and even want to confirm the income of the individual. They like to look at bank statements to see what the person spends their monies on and how the person spends money on a day to day basis. Investors and creditors tend to go through a

If markets are tight, lenders may not be willing to lend to the company at interest rates that the company can afford. Companies may be restricted internally by limits of borrowing (e.g. in the company’s organizational documentation) or externally by other financing documents to which it is a party (e.g. by covenants on debt incurrence in other loan agreements or indentures to which the company is a party). The existing capital structure of a company also plays a large part in how much a company can raise through its financing options. If a company is already severely leveraged, the company’s only financing option may be to pursue an equity offering. If a company is not highly leveraged and the company’s debt ratios (i.e. the ratio of EBITDA vs. total interest costs) are in an acceptable range for lenders, a company will be better positioned to obtain debt financing.

The balance sheet provides an immediate definition of the assets, liabilities and owner's equity a given company has been able to generate over a specific period of time. Balance sheets are invaluable for seeing the financial health of a given enterprise, and they also form the foundation of ratio-based analysis of firm liquidity, profitability, production and asset efficiency and performance. Balance sheets also define current and fixed assets, in addition to current and long-term liabilities. These two delineations are invaluable for internal managers and employees to see how the company is performing in generating long-term shareholder value and also how liabilities are being managed. These measures of performance on the balance sheet are also invaluable for investors and creditors as well, they show how well a company is delivering a return on the investor's paid-in capital and how credit-worthy a business is. Creditors require

By providing information on assets, liabilities, and stockholders’ equity, the balance sheet provides a basis for computing rates of return and evaluating the capital structure of the enterprise. As our opening story indicates, analysts also use information in the balance sheet to assess a company’s risk2 and future cash flows. In this regard, analysts use the balance sheet to assess a company’s liquidity, solvency, and financial flexibility. Liquidity describes “the amount of time that is expected to elapse until an asset is realized or otherwise converted into cash or until a liability has to be paid.”3 Creditors are interested in short-term liquidity ratios, such as the ratio of cash (or near cash) to short-term liabilities. These ratios indicate whether a company, like Amazon, will have the resources to pay its current and maturing obligations. Similarly, stockholders assess liquidity to evaluate the possibility of future cash dividends or the buyback of shares. In general, the greater Amazon’s liquidity, the lower its risk of failure.

Compare the assets of your company that are relatively liquid in nature against the amount of your debts that are coming due in the near term