Financial Statement Case 10-1

Refer to the Target Corporation financial statements, including the Notes. Answer the following questions.

Requirements

1. Which depreciation method does Target Corporation use for reporting in the financial statements? What type of depreciation method does the company probably use for income tax purposes?

2. What was the amount of depreciation and amortization expense as stated on the face of the financial statements, for the year ending January 29, 2022?

3. The statement of cash flows reports the cash purchases of property, plant, and equipment. How much were Targets additions to property, plant, and equipment during the year ending January 29, 2022? Did Target record any proceeds from the sale of property, plant, and equipment?

4. What was the amount of accumulated depreciation on January 29, 2022? What was the net book value of property, plant, and equipment for Target as of January 29, 2022?

5. Compute Targets asset turnover ratio for the year ending January 29, 2022. Round to two decimal places. How does Targets ratio compare with that of Kohls Corporation?