Analysis Project $($Target $2019)$

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$3$ points

$03$:$35$:$14$

Target Corporation prepares its financial statements according to U$.$S$.$ GAAP. Target's financial statements and disclosure notes for the year ended February $1,2020,$ are available here. This material also is available under the Investor Relations link at the company's website $($

www$.$target.com$).$

Required:

What was the amount of revenue Target reported in its income statement for the fiscal year ended February $1,2020?$

Disclosure Note $2$ indicates that Target generally records revenue in retail stores at the point of sale. Does that suggest that Target generally records revenue at a point in time or over a period of time?

Disclosure Note $2$ indicates that customers $("$guests$")$ can return some merchandise within $90$ days of purchase and can return other merchandise within a year of purchase. How is Target's revenue and net income affected by returns, given that it does not know at the time a sale is made which items will be returned?

Disclosure Note $2$ discusses Target's accounting for gift card sales. Does Target recognize revenue when it sells a gift card to a customer? If not, when does it recognize revenue?

Disclosure Note $4$ discussed how Target accounts for consideration received from vendors, which they call "vendor income." Does that consideration produce revenue for Target? Does that consideration produce revenue for Target's vendors?

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Thu May $98$:$23$PM

$2020$ Annual Report Target $C$

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