ACC CASE

This case is designed to show you how the items we have discussed this semester would actually be reported in a company's financial statements filed with the SEC. You will answer 40 questions on Target. Use the fiscal 2013 10k Report filed with the SEC for Target to answer the questions below. (you can locate the report at:http://www.sec.gov/Archives/edgar/data/27419/000002741914000014/tgt 20140201x10k.htm ) You will need to use the entire report, including the Management Discussion and Analysis section as well as the footnotes and related disclosures. QUESTION 1 1. Who is the company's auditor? Deloitte KPMG E&Y BDO Pricewaterhouse Moss Adams 0.5 points QUESTION 2 1. Does Target report their financial statements in conformity with U.S. GAAP or IFRS? U.S. GAAP IFRS 0.5 points QUESTION 3 1. In accordance with the standards of the PCAOB (Public Company Accounting Oversight Board) Target's CEO and CFO must sign a Report of Management to attest to: whether or not the financial statements present fairly the quality of their internal controls 0.5 points QUESTION 4 1. When does Target recognize revenue from Gift Card sales? (ignoring breakage) at the point of sale over time upon gift card redemption 0.5 points QUESTION 5 1. The company has discontinued operations and/or extraordinary items for fiscal 2013? True False 0.5 points QUESTION 6 1. How much is the Net Income or Net Loss for fiscal 2013? (Be sure to put a negative sign in front of a negative number. Record your answer in millions, for instance if the answer is 4,500 million, you would type 4500.) 0.5 points QUESTION 7 1. Online sales are recognized based on FOB Destination. True False 0.5 points QUESTION 8 1. Target REDcard customers receive a 5% sales discount on all purchases at Target.com. How much did Target report as reductions in Sales Revenues for these Sales Discounts in fiscal 2013? (Record your answer in millions, for instance if the answer is 30 million, you would type 30.) 0.5 points QUESTION 9 1. Target experienced a data breach in the fourth quarter of 2013. They recorded a $61 million pre-tax Data Breach expense, to be offset by expected insurance proceeds to cover these damages. What is the amount of the pretax net expense for the Data Breach in the 4th Quarter? (Record your answer in millions, for instance if the answer is 30 million, you would type 30.) 0.5 points QUES TION 10 1. Where did Target classify the Data Breach related expenses on the income statement? COGS SG&A Credit Card Expenses Net Interest Expense 0.5 points QUESTION 11 1. How much is Target's net interest expense for fiscal 2013? ["Net" means net of interest that was capitalized for assets under construction for Target's own use.] (Record your answer in millions, for instance if the answer is 4,500 million, you would type 4500.) 0.5 points QUESTION 12 1. How much cash was paid for interest (net of capitalized interest) for fiscal 2013? (record your answer in millions. For example, if your answer is 1,000 million, record your answer as 1000.) 0.5 points QUESTION 13 1. How much did Target declare in dividends during fiscal 2013? (Record your answer in millions, for instance if the answer is 4,500 million, you would type 4500.) 0.5 points Q U E S T I O N 14 1. How much did Target pay in dividends during fiscal 2013? (Record your answer in millions, for instance if the answer is 4,500 million, you would type 4500.) 0.5 points QUESTION 15 1. The company reports Comprehensive Income on one continuous statement of income and comprehensive income. True False 0.5 points Q U E S T I O N 16 1. Pension and other benefits liabilities are some of the items listed as part of OCI. True False 0.5 points Q U E S T I O N 17 1. What is the amount for OCI for 2013, be sure to put negative sign in front of a negative number? (Record your answer in millions, for instance if the answer is -30 million, you would type -30.) 0.5 points QUES TION 18 1. The company recorded a change in accounting principle for fiscal 2013. True False 0.5 points QUESTION 19 1. The company reports Cash & Cash Equivalents on their balance sheet. How much does Target classify as \"Cash Equivalents\" for fiscal 2013? (Record your answer in millions, for instance if the answer is 30 million, you would type 30.) 0.5 points QUESTION 20 1. Historically, the company uses the net method to record credit card receivables. True False 0.5 points QUESTION 21 1. In 2013, the company factored receivables that qualified as a sale transaction. True False 0.5 points QUESTION 22 1. How much gain did Target recognize on the credit card receivables transaction? (Record your answer in millions, for instance if the answer is 30 million, you would type 30.) 0.5 points QUESTION 23 1. What inventory method does the company use? Specific identification Average FIFO LIFO 0.5 points QUESTION 24 1. At fiscal year-end, the company values their inventory at.... Lower of cost or market Market FIFO Cost LIFO Cost 0.5 points QUESTION 25 1. Which of the following does Target include as inventoriable costs that, once sold, become Cost of Sales on the Income Statement? Freight In Freight Out Cash Discounts Import Costs All of the above 0.5 points QUESTION 26 1. What depreciation method does the company use for PPE? Activity based Double Declining Balance Straight Line Sum of Years Digits 0.5 points QUESTION 27 1. Long lived assets are reviewed for impairment when conditions indicate that an asset's carrying value may not be recoverable. How much did Target report for impairments of long-lived assets for 2013? (Record your answer in millions, for instance if the answer is 30 million, you would type 30.) 0.5 points QUESTION 28 1. The company incurred impairments to goodwill in fiscal 2013. True False 0.5 points QUESTION 29 1. Target acquired 3 companies in 2013. How much did Target pay over the fair value of all the net assets for the 3 acquired companies? (Record your answer in millions, for instance if the answer is 30 million, you would type 30.) 0.5 points QUESTION 30 1. How much is Target's Gift Card Liability at the end of fiscal 2013? (Record your answer in millions, for instance if the answer is 30 million, you would type 30.) 0.5 points QUES TION 31 1. Purchase obligations include all legally binding contracts for firm minimum commitments for inventory purchases. How much are Target's purchase obligations at the end of fiscal 2013? (record your answer in millions, for instance, if the answer is 4,500 million, you would type 4500.) 0.5 points QUESTION 32 1. According to Standard and Poor's, what is Target's credit rating for Long-term Debt at the time of this report? 0.5 points QUESTION 33 1. Target believes that due to their recent operating performance, Standard & Poor's may lower their longterm debt rating by one level. True False 0.5 points QUESTION 34 1. How much is Target's long-term debt (principal only not carrying value) at the end of fiscal 2013? (Record your answer in millions, for instance if the answer is 4,500 million, you would type 4500.) 0.5 points QUESTION 35 1. How much of Target's long-term debt (principal only) is considered current? (Record your answer in millions, for instance if the answer is 4,500 million, you would type 4500.) 0.5 points QUESTION 36 1. Target's contractual obligation for interest payment's associated with longterm debt are not reported as a liability on the balance sheet but considered an off balance sheet arrangement. True False 0.5 points QUESTION 37 1. How much is Target's contractual obligation for interest payment's associated with long-term debt at the end of fiscal 2013? (Record your answer in millions, for instance if the answer is 4,500 million, you would type 4500.) 0.5 points QUESTION 38 1. How much loss did Target incur on early retirement of debt in fiscal 2013? (Record your answer in millions, for instance if the answer is 30 million, you would type 30.) 0.5 points QUESTION 39 1. Fair Value Measurements for financial instruments are required disclosures and include three levels of the Fair Value Hierarchy. Target measures which of the following instruments using Level 2 valuation models? Shortterm investments Company owned life insurance investments Beneficial interest assets 0.5 points QUESTION 40 1. Target's effective income tax rate for fiscal 2013 is: ____________________ % *report your answer to one decimal place. For example, if your answer was 40.2%, enter your response as 40.2. Do not enter a % sign. 0.5 points