A11 -A17 . Financial statements provided on website

APPENDIX GAAP Comprehensive Case Target Corporation prepares its financial statements according to US. GAAP, T financial statements and disclosure notes for the year ended January 30, 2016, ane in Connect. This material is also available under the Investor Relations link at the ny's website (www.target.com). This case addresses a vaniety of characteristics of finans statements prepared using U.S. GAAP. Questions are grouped in parts according to vari sections of the textbook Part A: Financial Statements, Income Measurement, and Current Assets what name does Target label its balance sheet? What amounts did Target report for the following items on Janwary 30,2016 a. Current assets b. Long-term assets c. Total assets d. Current liabilities e. Long-term liabilities . Total liabilities g. Total sharcholders' equity A By A2. A3. What was Targer's largest current asset? What was its largest carrent liability? A4. Compute Target's current ratio and debt to equity ratio in 2016? A5. Assuming Target's industry had an average current ratio of 10 and an average dcbt A6. Why do you think Target has chosen to have its fiscal year end on Jamuary 30,ams A7. Regarding Target's audit report: to equity ratio of 2.5, comment on Target's liquidity and long-term solvency opposed to December 31? a. Who is Target's auditor? b. Did Target receive a "clean" (unmodified) audit opinion? A8. By what name does Target label its income statement? A9. What amounts did Target report for the following items for the year ended January 30, 2016? a. Sales b. Gross margin c. Earnings from continuing operations before income taxes d. Net earnings from continuing operations e. Net earnings A10. What was Target's basic earnings per share for the year ended January 30, 2016 All. What additional items, if any, does Target report as part of its comprehensive A12. Does Target prepare the statement of cash flows using the direct method or the A13. Which is higher, net earnings or operating cash flows? Which line item is the bigge income? indirect method? reason for this difference? Explain why. B- APPENDX B GAAP Comprehensive Case Note 13 provides information on Target's current assets. Assume all prepaid nses are for prepaid insurance and that insurance expense comprises of th14.665 million of Selling. general and administrative expenses reported in the income statement for the year ended January 30. 2016. How much Target pay for insurance coverage during the year? Prepare the adjusting entry would make to record all insurance expense for the year. What would be the effect on the income statement and balance sheet if Target didn't record an adjusting entry for prepaid expenses? What are the largest investing cash flow and the largest financing cash flow by the company for the year ended January 30, 2016? On what line of Target's income statement is revenue reported? What amount of revenue Target reported for the fiscal year ended January 30, 201 $50 million cash did Target reported Al was the losure Note 2 indicates that Target generally records revenue in retail stores the point of sale. Does that suggest that Target gencrally records revenue at a Al time or over a period of time? Explain. Disclosure Note 2 indicates that customers ("guests") can return some within 90 days of purchase and can return other merchandise within a year merchandise pu rchase. How are Target's revenue and net income affected by returns, given not know at the time a sale is made which items will be returned? does Disclosure Note 2 indicates that "Commissions earned on sales departments are included within sales and were $37 million...in 2015. . ."Do you A19. generated by leased think it likely that Target is accounting for those sales as a principal or an agent? Explain. A20. Disclosure Note 2 discusses Target's accounting for gift card sales. Does Target A21. Disclosure Note 4 discussed how Target accounts for consideration received from A22. What is Target's policy for designating investments as cash equivalents? recognize revenue when it sells a gift card to a customer? If not, when does it recognize revenue? Explain. vendors, which they call "vendor income." Does that consideration produce revenue for Target? Does that consideration produce revenue for Target's vendors? Explain. A23. What is Target's balance of cash equivalents for the fiscal year ended January 30 2016? A24. What is Target's policy with respect to accounting for merchandise returns? A25. Does Target have accounts receivable? Speculate as to why it has the balance that it has. (Hint, see Disclosure Notes 9, 11 and 13.) A26. What inventory method(s) does Target use to value its inventories? A27. In addition to the purchase price, what additional expenditures does the company A28. Calculate the gross profit ratio and the inventory turnover ratio for the fiscal year A29. What indexes does Target use to measure the LIFO provision? include in the initial cost of merchandise ended January 30, 2016. Compare Target's ratios with the industry averages of 24.5% and 7.1 times. A30. Why does Target feel that the retail inventory method will result in inventory being valued at the lower of cost or market? A31. How does Target account for inventory when arrangements are made with vendors whereby Target does not purchase or pay for merchandise until the merchandise is ultimately sold to a customer? APPENDIX GAAP Comprehensive Case Target Corporation prepares its financial statements according to US. GAAP, T financial statements and disclosure notes for the year ended January 30, 2016, ane in Connect. This material is also available under the Investor Relations link at the ny's website (www.target.com). This case addresses a vaniety of characteristics of finans statements prepared using U.S. GAAP. Questions are grouped in parts according to vari sections of the textbook Part A: Financial Statements, Income Measurement, and Current Assets what name does Target label its balance sheet? What amounts did Target report for the following items on Janwary 30,2016 a. Current assets b. Long-term assets c. Total assets d. Current liabilities e. Long-term liabilities . Total liabilities g. Total sharcholders' equity A By A2. A3. What was Targer's largest current asset? What was its largest carrent liability? A4. Compute Target's current ratio and debt to equity ratio in 2016? A5. Assuming Target's industry had an average current ratio of 10 and an average dcbt A6. Why do you think Target has chosen to have its fiscal year end on Jamuary 30,ams A7. Regarding Target's audit report: to equity ratio of 2.5, comment on Target's liquidity and long-term solvency opposed to December 31? a. Who is Target's auditor? b. Did Target receive a "clean" (unmodified) audit opinion? A8. By what name does Target label its income statement? A9. What amounts did Target report for the following items for the year ended January 30, 2016? a. Sales b. Gross margin c. Earnings from continuing operations before income taxes d. Net earnings from continuing operations e. Net earnings A10. What was Target's basic earnings per share for the year ended January 30, 2016 All. What additional items, if any, does Target report as part of its comprehensive A12. Does Target prepare the statement of cash flows using the direct method or the A13. Which is higher, net earnings or operating cash flows? Which line item is the bigge income? indirect method? reason for this difference? Explain why. B- APPENDX B GAAP Comprehensive Case Note 13 provides information on Target's current assets. Assume all prepaid nses are for prepaid insurance and that insurance expense comprises of th14.665 million of Selling. general and administrative expenses reported in the income statement for the year ended January 30. 2016. How much Target pay for insurance coverage during the year? Prepare the adjusting entry would make to record all insurance expense for the year. What would be the effect on the income statement and balance sheet if Target didn't record an adjusting entry for prepaid expenses? What are the largest investing cash flow and the largest financing cash flow by the company for the year ended January 30, 2016? On what line of Target's income statement is revenue reported? What amount of revenue Target reported for the fiscal year ended January 30, 201 $50 million cash did Target reported Al was the losure Note 2 indicates that Target generally records revenue in retail stores the point of sale. Does that suggest that Target gencrally records revenue at a Al time or over a period of time? Explain. Disclosure Note 2 indicates that customers ("guests") can return some within 90 days of purchase and can return other merchandise within a year merchandise pu rchase. How are Target's revenue and net income affected by returns, given not know at the time a sale is made which items will be returned? does Disclosure Note 2 indicates that "Commissions earned on sales departments are included within sales and were $37 million...in 2015. . ."Do you A19. generated by leased think it likely that Target is accounting for those sales as a principal or an agent? Explain. A20. Disclosure Note 2 discusses Target's accounting for gift card sales. Does Target A21. Disclosure Note 4 discussed how Target accounts for consideration received from A22. What is Target's policy for designating investments as cash equivalents? recognize revenue when it sells a gift card to a customer? If not, when does it recognize revenue? Explain. vendors, which they call "vendor income." Does that consideration produce revenue for Target? Does that consideration produce revenue for Target's vendors? Explain. A23. What is Target's balance of cash equivalents for the fiscal year ended January 30 2016? A24. What is Target's policy with respect to accounting for merchandise returns? A25. Does Target have accounts receivable? Speculate as to why it has the balance that it has. (Hint, see Disclosure Notes 9, 11 and 13.) A26. What inventory method(s) does Target use to value its inventories? A27. In addition to the purchase price, what additional expenditures does the company A28. Calculate the gross profit ratio and the inventory turnover ratio for the fiscal year A29. What indexes does Target use to measure the LIFO provision? include in the initial cost of merchandise ended January 30, 2016. Compare Target's ratios with the industry averages of 24.5% and 7.1 times. A30. Why does Target feel that the retail inventory method will result in inventory being valued at the lower of cost or market? A31. How does Target account for inventory when arrangements are made with vendors whereby Target does not purchase or pay for merchandise until the merchandise is ultimately sold to a customer