Look again at Targets 2010 financial statements contained in its 2010 annual report. For instructions on how to access the report online, see the Continuing Financial Statement Analysis Problem in Chapter 2. On page 33 of the annual report youll
1. What makes up Target’s inventory? Look at footnote 11 of the financial statements (page 44 of the financial statements found in Target’s 2010 annual report). What inventory method (such as FIFO and LIFO) does Target use?
2. Look at Target’s balance sheet. How much has Target invested in inventory as of January 29, 2011, and January 30, 2010?
3. Look at Target’s balance sheet. How much inventory does Target have per store as of January 29, 2011, and January 30, 2010? (Divide total inventory by the number of stores Target operated in each of these years [1,750 at January 29, 2011, and 1,740 at January 30, 2010].) Is inventory per store increasing or decreasing?
4. Look at Target’s balance sheet and income statement. What is Target’s inventory turnover rate for the year ending January 29, 2011? What does this tell you?
5. Look at Target’s balance sheet and income statement. What is Target’s days-sales-in-inventory ratio for the year ending January 29, 2011? What does this tell you?
6. Looking back over your answers to questions 1 through 5, how do you think Target is performing?
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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
This problem has been solved!
- Tutor Answer
Req 1 Target s inventory is made up of all retail items that are sold at Target Target accounts for …View the full answer
This video is about ways to attempt consolidated balance sheet questions. since the unconsolidated financial statements of parent and subsidiary companies are prepared separately, consolidating the balance sheets of both companies is critical and sometimes becomes complex. the tutorial will guide students on to how questions on attempting questions on consolidated financial statements in an easier yet more effective way.
Students also viewed these Managerial Accounting questions