Problem #2 Target Required: Access the Target 2020 Annual Report/10K (In the appendix to the textbook or obtain online). Look at the financial statements and Notes to the financial statements closely and attempt to infer what kinds of information they report. Then, answer the following questions based on the Report.

1. On what day of the year does their fiscal year end (their policy in general, not just for one year)?

2. For how many years do they present complete: a. Balance Sheets b. Income Statements c. Cash Flow Statements

3. Are their financial statements audited by independent CPAs? How do you know?

4. Did their total assets increase or decrease over the last year?

5. What was the ending balance of Inventory?

6. Write out their basic accounting equation in dollars at year-end.

7. Use the amounts in the financial statements to write out the retained earnings equation for the 2020 fiscal year (include effects of repurchase of stock). 8. Assume Target sold goods costing $1,100 on account for $1,600. Prepare the (complete) journal entry to record this transaction.

9. Show (in detail) the effect of the transaction in question #8 on the balance sheet equation (if more than one account affects a category, show the effect of each account and the total effect on that category)... A = L + S/E