Target Corporations 2014 financial statements included the following items (dollars in millions): INCOME STATEMENT: Cost of sales
Question:
Target Corporation’s 2014 financial statements included the following items (dollars in millions):
INCOME STATEMENT:
Cost of sales ......................................................$51,278
STATEMENT OF CASH FLOWS (OPERATING SECTION):
Increase in accounts receivable ...............................0
Increase in inventory ..........................................(512)
Increase in accounts payable ..............................777
a. Assuming that accounts payable refers only to inventory suppliers, compute the cash payments made by Target during 2014 to inventory suppliers.
b. Review the changes in the current accounts above and comment on the cash fl ow implications to Target (i.e., did they help to increase or decrease cash flows?).
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... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
a The increase in inventory indicates that Target purchased more inventory than it sold and that ass...View the full answer
