Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended February 3, 2018, are available

image text in transcribed

Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material also is available under the Investor Relations link at the company's website (www.target.com). Target does not have investments in stock or bonds. However, CVS Health Corp., which purchased Target's pharmacy and clinical business during 2015, does have some investments. Access CVS's 2017 10K (issued on February 14, 2018) at investors.cvshealth.com to answer the following questions. quired: 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 purposes? b. Per CVS's balance sheet, what was the balance in CVS's short-term investments as of December 31, 2017, and December 31, 2016? c. Per CVS's statement of cash flows, what cash transactions affected short-term investments during 2017? 2. Per Note 1, CVS has equity-method investments in SureScripts, LLC, and in Heartland Healthcare Services. CVS indicates that those nvestments are immaterial for the year ended December 31, 2017. Assuming that the Heartland investment is material, a. How would Heartland's earnings affect CVS's income statement? b. How would Heartland's earnings affect CVS's balance sheet? Complete this question by entering your answers in the tabs below. Reg 1a Req 1b Req 10 Req 2 Prey 1 of 1 Next arch WA O Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material also is available under the Investor Relations link at the company's website (www.target.com). Target does not have investments in stock or bonds. However, CVS Health Corp., which purchased Target's pharmacy and clinical business during 2015, does have some investments. Access CVS's 2017 10K (issued on February 14, 2018) at investors.cvshealth.com to answer the following questions. quired: 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 purposes? b. Per CVS's balance sheet, what was the balance in CVS's short-term investments as of December 31, 2017, and December 31, 2016? c. Per CVS's statement of cash flows, what cash transactions affected short-term investments during 2017? 2. Per Note 1, CVS has equity-method investments in SureScripts, LLC, and in Heartland Healthcare Services. CVS indicates that those nvestments are immaterial for the year ended December 31, 2017. Assuming that the Heartland investment is material, a. How would Heartland's earnings affect CVS's income statement? b. How would Heartland's earnings affect CVS's balance sheet? Complete this question by entering your answers in the tabs below. Reg 1a Req 1b Req 10 Req 2 Prey 1 of 1 Next arch WA O

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information System

Authors: James A. Hall

7th Edition

978-1439078570, 1439078572

Students also viewed these Accounting questions

Question

List and discuss the practice standards.

Answered: 1 week ago