Understanding the notes to the balance sheet

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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

Reference no: EM13835887

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