Obtain the Target Corporation’s annual report at http://investors.target.com using the instructions in Appendix B. Anyone who has shopped at Target knows that many of its customers use a credit card to pay for their purchases. There is even a Target brand credit card. However, Target did not report any accounts receivables or credit card receivables on its January 28, 2017 (2016), balance sheet.
a. Review Target’s Form 10-K and determine where Target is reporting its credit card receivables.
b. How long does it usually take Target to collect its credit card receivables?
c. How much credit cards receivables did Target have as of January 28, 2017, and January 30, 2016, respectively?
d. In “Item 1. Business” section of its Form 10-K, Target discloses that it has a financial interest in the credit card that bears its name. Discuss this relationship.