Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for

Question:

Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for the year ended January 30, 2016, are available in Connect. This material is also available under the Investor Relations link at the company's website (www.target.com).

Required:

1. By what name does Target label its income statement?

2. What amounts did Target report for the following items for the year ended January 30, 2016?

a. Sales

b. Gross margin

c. Earnings from continuing operations before income taxes

d. Net earnings from continuing operations

e. Net earnings

3. What additional items, if any, does Target report as part of its comprehensive income?

4. Does target prepare the statement of cash flows using the direct method or the indirect method?

5. Which is higher, net earnings or operating cash flows? Which line item is the biggest reason for this difference?

Explain why.

6. What is the largest investing cash flow and the largest financing cash flow reported by the company for the year ended January 30, 2016?

Financial Statements
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