Target Corporations 2012 financial statements included the following items (dollars in millions): INCOME STATEMENT: Cost of sales

Question:

Target Corporation’s 2012 financial statements included the following items (dollars in millions):

INCOME STATEMENT:

Cost of sales .................. $50,568

STATEMENT OF CASH FLOWS (OPERATING SECTION):

Increase in accounts receivable ..........217

Decrease in inventory............. 15

Increase in accounts payable ...........199

a. Assuming that accounts payable refers only to inventory suppliers, compute the cash payments made by Target during 2012 to inventory suppliers.

b. Review the changes in the current accounts above and comment on the cash flow implications to Target (i.e., did they help to increase or decrease cash flows?).

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...