Target Corporation prepares its financial statements according to U.S. GAAP. Targets financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This material is also available under the Investor Relations link at the companys website (www.target.com). This case addresses a variety of characteristics of financial statements prepared using U.S. GAAP. Questions are grouped in parts according to various sections of the textbook.

PART F: SHAREHOLDERS EQUITY AND ADDITIONAL FINANCIAL REPORTING ISSUES

F1.		Refer to Targets Consolidated Statements of Shareholders Investment. What are the five types of events and transactions that affected one or more of the Shareholders Investment accounts in the year ended January 30, 2016?
F2.		Note 25, Share Repurchase, provides the information we need to reconstruct the journal entry that summarizes Targets share repurchases in the year ended January 30, 2016. Provide that entry. Does Target account for share repurchases as treasury stock or retired shares? Explain.
F3.		Over how many years is the compensation associated with Targets share-based awards expensed?
F4.		Based on the fair value of the awards, what was Targets primary form of share-based compensation for the year ended January 30, 2016?
F5.		If projecting Targets earnings per share based solely on EPS reported over the most recent three years, would you project increasing or decreasing EPS?
F6.		How many shares were included in diluted earnings per share, but not basic earnings per share, due to share-based compensation awards?
F7.		Refer to Targets financial statements for the year ended January 30, 2016. Note 12 provides information on Targets inventories. What method does Target use to report most of its inventories? If Target changed that method to another method, what are the steps Target would take to account for and report the change?
F8.		Suppose that Target uses FIFO costing method but decided to change to the LIFO method. What are the steps Target would take to account for and report the change?
F9.		Targets cash flows from its operations over the previous three years have significantly exceeded its net income. Without regard to Target specifically, explain the difference between net income and the cash flows from operating activities.
F10.		Why did Target add $2.213 million in the determination of cash flows from operating activities for depreciation and amortization for the year ended January 30, 2016?
F11.		A contributor to the difference in Targets net income and cash flows from operating activities and net income in each of the three years presented is a sizable increase in the amount Target owes its suppliers. If Target had used the direct rather than the indirect method of reporting operating activities, how would this reduction in accounts payable have affected cash from operating activities?
F12		Page B-5Cash outflows for financing activities during each of the three years presented exceeded cash inflows from financing activities. In fact, investing activities also produced net cash outflows in two of the three years. How is that possible? What is the major contributor from year to year in the amount of cash used in financing activities? What are the next two highest contributors to that difference?
F13.		Some transactions that dont 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? What are two other such activities that some companies might report?