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 the company's website (www.target.comLinks to an external site.) (or you can google Target annual report 2017) and answer following questions.

Required:

1. What amount ($ in millions) does Target report for net property and equipment for the year ended February 3, 2018? What is the largest category of property and equipment reported on the face of the balance sheet?

2. What amount ($ in millions) of cash was used in the fiscal year ended February 3, 2018, to purchase property and equipment? Is this an increase or decrease compared to the previous year?

3. Do you think a company like Target would have more research and development costs or more advertising costs? Explain.

4. What is Targets fixed-asset turnover ratio for the fiscal year ended February 3, 2018? What is the ratio intended to measure?

5. Does Target include any intangible assets in total assets? Hint: see Notes 15 and 16.

Find CVS Health Corp. (which purchased Targets pharmacy and clinical business in 2015)s financial statements and disclosure notes (i.e., 10-K) for the year ended December 31, 2017 (issued on February 14, 2018) at www.investors.cvshealth.comLinks to an external site. (or you can google 'CVS annual report 2017') and answer following questions.

6. CVS indicates in Note 1 that it has some short-term investments that consist of certificates of deposit (CDs).

a. How has CVS classified those CDs for accounting purpose?

b. Per CVSs balance sheet, what was the balance in CVSs short-term investments as of December 31, 2017, and December 31, 2016?

c. Per CVSs statement of cash flows, what cash transactions affected short-term investments during 2017?

d. Prepare a T-account that summarizes transactions affecting CVSs short-term investments during 2017. Speculate as to the explanation for any plug figure necessary to make the T-account balance.

7. Per Note 1, CVS has equity-method investments in SureScripts, LLC, and in Heartland Healthcare Services. CVS indicates that those investments are immaterial for the year ended December 31, 2017. Assuming that the Heartland investment is material,

a. How would Heartlands earnings affect CVSs income statement?

b. How would Heartlands earnings affect CVSs balance sheet?