Use Target Corporation’s Fiscal 2018 Annual Report and Note 5 “Consideration Received from Vendors” and Note 10 “Other Current Assets” to answer the following questions. Visit https://www.pearsonglobaleditions.com/Horngren to view a link to Target Corporation’s annual report.
Requirements 1. How much accounts receivable did Target report on its balance sheet as of February 2, 2019? As of February 3, 2018?
2. Refer to Note 10, “Other Current Assets.” What types of receivables are included in Target’s other current assets on its balance sheet as of February 2, 2019 and February 3, 2018?
3. Refer to Note 5 “Consideration Received from Vendors.” What does Vendor Income Receivable represent?
4. Compute Target’s acid-test ratio as of February 2, 2019 and February 3, 2018. Did the ratio improve or deteriorate? For each date, if all the current liabilities came due immediately, could Target pay them?