Question

In: Accounting

Use the Target Corporation’s Form 10-K to answer the following questions related to Target’s fiscal year...

Use the Target Corporation’s Form 10-K to answer the following questions related to Target’s fiscal year end of January 30, 2016. Target’s Form 10-K is available at https://www.sec.gov/cgi-bin/viewer?action=view&cik=27419&accession_number=0000027419-16-000043&xbrl_type=v# Section 2: Chapter 3 material: What percentage of Target’s total revenues end up as net earnings? What percentage of Target’s sales go to pay for the costs of the goods being sold? What costs does Target include in its Cost of Sales account? When does Target recognize revenue from the sale of gift cards?

Solutions

Expert Solution

Question 1: Percentage of Target’s total revenues end up as net earnings-

Total revenue for the year ended on January 30, 2016 = $73,785 million

Net earnings for the year ended on January 30, 2016 = $3,363 million

Percentage of net earnings out of total revenue = ($3,363 million ÷ $73,785 million) x 100= 4.55%   

Question 2: Percentage of Target’s sales go to pay for the costs of the goods being sold-

Total revenue for the year ended on January 30, 2016 = $73,785 million

Cost of Goods sales during the year ended on Januay 30, 2016 = $51,997 million

Percentage of cost of goods sold out of total sales = ($51,997 ÷ $73,785) x 100 = 70.4%

Question 3: Costs that include in the Cost of Sales account-

Total cost of products sold includes -

1. Freight expenses associated with moving merchandise from our endors to our distribution centers and our retail stores.

2. Vendor allowans that are not a reimbursement of specific, incremental, and identifiable costs.

3. Inventory shrink / Physical inventory losses

4. Markdowns

5. Outbound shipping and handling expenses associated with sales to our guests

6. Cash discounts

7. Distribution center costs, including compensation and benefits costs

8. Import costs

Question 4:

Revenue from gift card sales is recognized upon gift card redemption.


Related Solutions

Use the Target Corporation’s Form 10-K to answer the following questions related to Target’s 2015 fiscal...
Use the Target Corporation’s Form 10-K to answer the following questions related to Target’s 2015 fiscal year (year ended January 30, 2016). Target’s Form 10-K is available on the company’s website ir through the SEC’s EDGAR database. Appendix A provides instructions for using the EDGAR database. Required What percentage of Target’s total revenues end up as net earning? What percentage of Target’s sales to go to pay for the costs of the goods being sold? What cost does Target include...
The 2016 Form 10-K of NetFlix includes the following footnoted information. Use this information to answer...
The 2016 Form 10-K of NetFlix includes the following footnoted information. Use this information to answer the required. The computation of net income per share is as follows: Year ended December 31, 2016 2015 2014 (in thousands, except per share data) Basic earnings per share: Net income $ 186,678 $ 122,641 $ 266,799 Shares used in computation: Weighted-average common shares outstanding 428,822 425,889 420,544 Diluted earnings per share: Net income $ 186,678 $ 122,641 $ 266,799 Shares used in computation:...
Use the following information to answer questions 1 through 10: You are trying to form portfolios...
Use the following information to answer questions 1 through 10: You are trying to form portfolios based on the following information: State Probability Return A Return B Poor 20.0% -4.0% -4.0% Normal 40.0% 3.0% 8.0% Good 30.0% 10.0% 8.0% Very Good 10.0% 30.0% 10.0% You also know the risk-free rate is 5%. Calculate the Weight for STOCK A of the Minimum Variance Portfolio (put your answer as a number value of a percentage...5 for 5%).
Use the following to answer the next four questions: During the fiscal year ended December 31,...
Use the following to answer the next four questions: During the fiscal year ended December 31, 2019, the City of Johnstown issued 6% general obligation serial bonds in the amount of $2,000,000 and received $2,040,000 and used $1,980,000 of the proceeds to construct a police station. The $40,000 premium was transferred to a debt service fund. The $20,000 left in the capital projects fund at the end of the project was later transferred to the debt service fund. The bonds...
Retrieve the Form 10-K for American Eagle Outfitters for the fiscal year ending February 3, 2018....
Retrieve the Form 10-K for American Eagle Outfitters for the fiscal year ending February 3, 2018. American Eagle’s Form 10-K can be accessed through the SEC EDGAR database athttps://www.sec.gov/Archives/edgar/data/919012/000156459018006045/aeo-10k_20180203.htm Hints: You will need to search the financial statement footnotes to find some of the information. Also, the financial statements are in thousands, except for per share amounts. If a number is in thousands, please indicate this by writing out the full number or writing ‘(in thousands)’. Furthermore, you will not...
Answer ALL the following questions on THIS FORM (Use as many words and pages as you...
Answer ALL the following questions on THIS FORM (Use as many words and pages as you like) FIRST QUESTION Henri is the owner of the “Chez Henri” Restaurant. It is not a large restaurant (78 seats). For this reason, it does not have many people on the payroll. Henri has been handling the general manager’s responsibilities and has a good friend working half a day, five days a week, to take care of such matters as bank deposits, preparing accounts...
Use the following to answer questions 20-22 Amy Co. has the following data related to an...
Use the following to answer questions 20-22 Amy Co. has the following data related to an item of inventory: Inventory, May 1 40 units @ $100 Purchase, May 7 70 units @ $80 Purchase, May 16 170 units @ $60 Ending Inventory 10 units 20. The value assigned to ending inventory if Amy uses LIFO is 21. The value assigned to cost of goods sold if Amy uses FIFO is 22. The value assigned to ending inventory if Amy uses...
Analyze 10-K filings (the most recent) for PepsiCo and for Coca-Cola. Answer the following questions. A....
Analyze 10-K filings (the most recent) for PepsiCo and for Coca-Cola. Answer the following questions. A. Which inventory method does each company use? B. How do they account for their Accounts Receivables? C. How do they value their inventory? D. How do they account for and value their PPE? E. Was there any significant changes in PPE for both companies? F. How much working capital did each company have?
Please answer the following questions based on the Columbia Sportswear Company 2017 10-K. (Link to the...
Please answer the following questions based on the Columbia Sportswear Company 2017 10-K. (Link to the Columbia's 10K: http://files.shareholder.com/downloads/COLM/6230778634x0x977594/E27E55DB-E7E3-4C4A-BA09-B8BB85FB2893/2018_Combined_Shareholder_Letter_and_10-K.pdf) 1. Assets classified as Property, Plant and Equipment can be either acquired for use in operations, or acquired for resale. a. True b. False 2. What is the December 31, 2017 balance (in thousands) of Land and Improvements for Columbia Sportswear Company? a. $21,065 b. $21,862 c. $21,049 d. $20,862 3. What is the December 31, 2017 balance (in thousands) of...
Use the following information to answer Questions #6 through #10.—Bimbo Bread Company started Year 2 with...
Use the following information to answer Questions #6 through #10.—Bimbo Bread Company started Year 2 with balances in the following accounts: ASSETS CLAIMS CASH INVENTORY LAND ACCTS. PAYABLE COMMON STOCK RET. EARNINGS 25,000 3,000 5,000 0 18,000 15,000 Bimbo experienced the following transactions during Year 2: Purchased $16,000 of inventory on account. Terms were 2/10, net 30. The inventory purchased above was delivered FOB Shipping Point. Freight costs totaled $600. Returned $500 of the inventory purchased above. Recorded the cash...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT