I. Stockholders' Equity

A. Determine how Target Corporation got its initial financial start in terms of debt (liabilities) or equity (capital). Support your response.

B. Analyze the equity section of Target corporation's balance sheet as compared to its industry average. Rate Target corporation's performance against its competitors.

C. Review Target corporation's dividend policy and its history. Based on the information, discuss the trends over the past year.

II. Income Measurement/Revenue Recognition

A. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) came together on a unified project to outline the accounting principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS. Research IAS-18, Revenue, and discuss how it would apply to Target corporation.

B. Review Target corporation's revenue over the past two years. Analyze the change in revenue (increase/decrease) and give the reasons for this change.

C. Reflecting upon Target corporation's balance sheet, identify the unearned revenue accounts listed. How does Target cororation handle the proper accounting treatment with regard to recognizing revenue from unearned revenue accounts?

Income statements

	Period Ending	1/28/2017	1/30/2016
Total Revenue		$69,495,000	$73,785,000
Cost of Revenue		$48,872,000	$51,997,000
Gross Profit		$20,623,000	$21,788,000
Research and Development		$0	$0
Sales, General and Admin.		$13,356,000	$14,665,000
Non-Recurring Items		$0	$0
Other Operating Items		$2,298,000	$2,213,000
Operating Income		$4,969,000	$4,910,000
Additional income/expense items		$0	$620,000
Earnings Before Interest and Tax		$4,969,000	$5,530,000
Interest Expense		$1,004,000	$607,000
Earnings Before Tax		$3,965,000	$4,923,000
Income Tax		$1,296,000	$1,602,000
Minority Interest		$0	$0
Equity Earnings/Loss Unconsolidated Subsidiary		$0	$0
Net Income-Cont. Operations		$2,669,000	$3,321,000
Net Income		$2,737,000	$3,363,000
Net Income Applicable to Common Shareholders		$2,737,000	$3,363,000
Balance Sheet
Current Assets
Cash and Cash Equivalents		$2,512,000	$4,046,000
Short-Term Investments		$0	$0
Net Receivables		$0	$0
Inventory		$8,309,000	$8,601,000
Other Current Assets		$1,169,000	$1,483,000
Total Current Assets		$11,990,000	$14,130,000
Long-Term Assets
Long-Term Investments		$0	$0
Fixed Assets		$24,658,000	$25,217,000
Goodwill		$0	$0
Intangible Assets		$0	$0
Other Assets		$783,000	$915,000
Deferred Asset Charges		$0	$0
Total Assets		$37,431,000	$40,262,000
Current Liabilities
Accounts Payable		$10,989,000	$11,654,000
Short-Term Debt / Current Portion of Long-Term Debt		$1,718,000	$815,000
Other Current Liabilities		$1,000	$153,000
Total Current Liabilities		$12,708,000	$12,622,000
Long-Term Debt		$11,031,000	$11,945,000
Other Liabilities		$1,878,000	$1,915,000
Deferred Liability Charges		$861,000	$823,000
Misc. Stocks		$0	$0
Minority Interest		$0	$0
Total Liabilities		$26,478,000	$27,305,000
Stock-Holders Equity
Common Stocks		$46,000	$50,000
Capital Surplus		$5,661,000	$5,348,000
Retained Earnings		$5,884,000	$8,188,000
Treasury Stock		$0	$0
Other Equity		($638,000)	($629,000)
Total Equity		$10,953,000	$12,957,000
Total Liabilities & Equity		$37,431,000	$40,262,000