Find Target's financial statements and disclosure notes for the year ended February $3,2018($which is $2017$ fiscal year$)$ at the Investor Relations link at

$13$

the company's website $($

www$.$target.com$).$

Required:

What was the amount of revenue Target reported for $2017$ fiscal year?

Disclosure Note $2$ indicates that Target generally records revenue in retail stores at the point of sale. Does that suggest that Target generally records revenue at a point in time or over a period of time? Explain.

Disclosure Note $2$ indicates that customers $("$guests$")$ can return some merchandise within $90$ days of purchase and can return other merchandise within a year of purchase. How is Target's revenue and net income affected by returns, given that it does not know at the time a sale is made which items will be returned?

Disclosure Note $2$ indicates that "Commissions earned on sales generated by leased departments are included within sales and were $$44$ million... in $2017."$ Do you think it likely that Target is accounting for those sales a as principal or an agent? Explain.

Disclosure Note $2$ discusses Target's accounting for gift card sales. Does Target recognize revenue when it sells a gift card to a customer? If not, when does it recognize revenue? Explain.

Critical Accounting Estimates section discusses how Target accounts for consideration received from vendors, which they call "vendor income."

Does that consideration produce revenue for Target? Does that consideration produce revenue for Target's vendors? Explain.

$7.$ What is Target's policy for designating investments as cash equivalent?

$8.$ What is Target's balance of cash and cash equivalent for $2017$ fiscal year?

$9.$ Does Target have accounts receivable? Speculate as to why it has the balance that it has. $($Hint: See Disclosure Notes $9,11$ and $13).$