Excerpts from the operating sections of the 2008 statement of cash flows for Target and Toyota are

Question:

Excerpts from the operating sections of the 2008 statement of cash flows for Target and Toyota are provided below. Target publishes U.S. GAAP-based financial statements and Toyota publishes IFRS-based financial statements (dollars in millions).

REQUIRED:a. What is the bad debt provision, and on which other financial statement would you find it?b. Explain why the bad debt provision and the change in accounts receivable appear in the operating section of the statement of cash flows.c. Provide several reasons why net cash from operations is so much larger than net earning for both companies.d. Does it look like U.S. GAAP and IFRS account for bad debts much differently?Explain.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...