Excerpts from the operating sections of the 2012 statement of cash flows for Target and Toyota are provided below. Target publishes U.S. GAAP-based financial statements and Toyota publishes IFRS-based financial statements (dollars in millions):

REQUIRED:
a. What is the bad debt provision, and on which other financial statement would you find it?
b. Explain why the bad debt provision and the change in accounts receivable appear in the operating section of the statement of cash flows.
c. Provide several reasons why net cash from operations is so much larger than net earnings for both companies.
d. Does it look like U.S. GAAP and IFRS account for bad debts much differently?Explain.

Target Toyota $2,999 4,481 Net earnings Bad debt provision 206 Change in accounts receivable 17(7,123) Net cash from operations $5,325 $17,672