1. Note 25, Share Repurchase, provides the information we need to reconstruct the journal entry that summarizes Target's share repurchases in the year ended Feb 1, 2020. Prove that entry (Dollars in millions, rounded to the nearest million).
2. Does Target account for share repurchases as (a) treasury stock or (b) retired shares?
3. What are the 3 types of awards described in Note 21, Share-Based Compensation?
4. Based on the fair value of the awards granted, what was Target's primary form of share-based compensation for the year ended Feb 1, 2020?
5. Projections of future performance should be based primarily on continuing operations. What was diluted EPS for continuing operations in each of the most recent 3 years?
6. How many shares were included in diluted earnings per share but not basic earnings per share due to share-based compensation awards?
7. Refer to Target's financial statements for the year ended February l, 2020. Note 8 provides information on Target's inventories. What method does Target use to report most of its inventories?
8. If Target changed that method to another method, how would it account for the change?
9. Suppose Target uses the FIFO costing method but decided to change to the LIFO method. How would it account for the change?
10. Did Target's cash provided by operating activities in fiscal 2019 increase or decrease from the previous year?
11. Is Target's cash provided by operating activities more or less than net income in fiscal 2019?
12. What is Target's largest investing activity?
13. Is Target increasing or decreasing its long-term debt?
14. Some transactions that don't increase or decrease cash must be reported in conjunction with a statement of cash flows. What activity of this type did Target report during each of the three years presented?
15. Note 16 indicates that Target has derivative instruments consisting of interest rate swaps that are designated as fair value hedges. The total notional amount of the existing swap agreements is S 1,500 million. According to the note, how is the net settlement determined under these agreements?
16. Target has designated its interest rate swaps as fair value hedges. What interest rate risk is Target concerned about?
17. Does Target have a gain or a loss on its interest rate swaps for the fiscal year ended February l, 2020, and where in the financial statements was the gain or loss recorded? On the bond? Did earnings increase or decrease due to the hedging arrangement? Why?
18. Based on information in Note 6 and Note 15, what are the balance sheet effects of the hedging relationships described in Note 16 at February l, 2020?