Victor Ivarsson

Accounting 110
Professor Chene
May 1, 2015
Annual Report Project for Target Corporation
1. Target Corporation reports two business segments: Retail and Credit
card.
2. Target competes in the Retail Segment with a number of retailers
such as; traditional and off-price merchandise retailer, apparel
retailers, Internet retailers, wholesale clubs, category specific
retailers, drug stores, supermarkets and other forms of retail
commerce to separate themselves from other competitors.
7. Targets independent auditors are Ernst & Young, LLP.
14.
2010: Targets gross margin for 2010 was (in millions) $20,061, with
a gross margin rate of 30.5 ($20,061/$65,786).
2009: The gross margin was $19,373 (million) with a gross margin
rate of 30.5% ($19,373/$63,435).
2008: The gross margin for Target Corporation was $18,727 million
with a gross margin rate of 29.8% ($18,727/$62,884).
15. Gross margin increased because of sales increased at a faster rate
than that of cost of sales.
18.
2010-2009: The change in sales between fiscal years 2010 and
2009 (in millions) increased by $2,351 ($65,786 - $63,435) with a
3.7% increase ($2,351/$63,435=.0370).
2009 2008: The change in sales between 2009 and 2008 was an
increase of $551 ($63,435 - $62,884) and an increase in percentage
change of .9% ($551/$62,884=.0087).
19. The trend in revenues for Target Company is an overall increase.
There is a modest increase from 2008 to 2009 and then a significant
increase from 2009 to 2010.
29. The largest balance for both years 2010 and 2009 was Inventory.
2010: 39.4% ($17,213/$43,705).
2009: 41.4% ($18,424/$44,533).
30. The asset account Buildings and Improvements had the largest
balance for both 2009 and 2010.
2010: The percentage for long-term assets of total assets in 2010
was 60.6% ($25,493+999/$43,705). 60.6% + 39.4% = 100%.
2009: The percentage for long-term assets of total assets in 2009
was 58.6% ($25,280+829/$44,533). 58.6% + 41.4% = 100%.
39.
The change in total liabilities and change in percentage between
fiscal year-end 2010 2009 was a decrease of $968 ($28,218 $29,186), and a decrease in percentage of 3.3% ($968/$29,186). The
net interest expense account is directly related to total liabilities,
which also decreased from 2009 to 2010 by $44; 5.5% decrease.
40. The change in the balance amount of the retained earnings account
between 2009 and 2010 was a decrease of $249 ($12,698-$12,947)

and this was caused by the beginning retained earnings balance of

$12,947 + Net Income $2,920 minus dividends $649 and stock
purchased for $2,510.
41. Current ratio for;
2010: 1.71 ($17,213/$10,070).
2009: 1.63 ($18,424/$11,327).
This indicates that Target does not have a liquidity problem.
44. Yes, Target does have a par value and it is $.0833/share.
45. Total amount of issued shares of common stock at fiscal year-end,
2010: 704,038,218 shares
2009: 744,644,454 shares
49. Total dollar amounts for cash and cash equivalents for,
2010: $488 decrease
2009: $1,336 increase
2008: $1,586 decrease
53.
1. Fiscal year for Target Corporation consists of 52 weeks and ends
on the Saturday nearest January 31. Rather than calendar years, all
references to years relate to fiscal years if not under unusual
circumstances.
2. Use of estimates for Target is the preparation of their
consolidated financial statements requires Targets management to
make estimates and assumptions even though these estimates may
differ from results, which affect the financial statements and related
notes with the U.S. Generally Accepted Accounting Principles (GAAP).
55. The net realizable value of receivables for year-end 2010 is gross
receivables (in millions) $6,843 less allowance of $690 = net $6,153.
57. Target uses the inventory cost flow method LIFO (Last in, first out),
which is stated at the lower of LIFO cost or market.
58. The estimated useful lives of Targets depreciable assets are
Buildings and Improvements 8-39 years; Fixtures and Equipment 315 years; Computer Hardware and Software 4-7 years.
64.
1. Purchase obligations included all legally binding contracts for
Target and are firm commitments for inventory purchases,
merchandise royalties, equipment purchases, marketing related
contracts software acquisition/license commitments and service
contracts, which amounted to circa $1,907 million at year-end 2011
and $2,016 million at year-end 2010. Target issues purchase orders
for inventory purchases that authorizes purchases and that are also
cancelable, wherein Target may be obligated to reimburse the
vendor for cancelled items.
2. Trade letters are also issued by Target, which are not obligations
pending that the conditions of the letter of credit is met. Targets
trade letters of credit totaled $1,522 at year-end 2011 and $1,484 in
2010.