Understanding real-world annual reports Required Use the Target Corporations annual report in Appendix B to answer the

Question:

Understanding real-world annual reports

Required

Use the Target Corporation’s annual report in Appendix B to answer the following questions.

Note that net income and net earnings are synonymous terms.

a. Which accounts on Target’s balance sheet are accrual type accounts?

b. Which accounts on Target’s balance sheet are deferral type accounts?

c. Compare Target’s 2009 net earnings to its 2009 cash provided by operating activities. Which is larger?

d. First, compare Target’s 2008 net earnings to its 2009 net earnings. Next, compare Target’s 2008 cash provided by operating activities to its 2009 cash provided by operating activities. Which changed the most from 2008 to 2009, net earnings or cash provided by operating activities?

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...