Target Case (Static) [LO6-2, 6-6, 6-7]

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material also is available under the Investor Relations link at the company’s website (www.target.com).

Required:
1. On what line of Target’s income statement is revenue reported? What was the amount of revenue Target reported for the fiscal year ended February 3, 2018?



2. Disclosure Note 2 indicates that Target generally records revenue in retail stores at the point of sale. Does that suggest that Target generally records revenue at a point in time or over a period of time? Explain.



3. Disclosure Note 2 indicates that customers (“guests”) can return some merchandise within 90 days of purchase and can return other merchandise within a year of purchase. How is Target’s revenue and net income affected by returns, given that it does not know at the time a sale is made which items will be returned?



4. Disclosure Note 2 indicates that “Commissions earned on sales generated by leased departments are included within sales and were $44 million . . . in 2017.” Do you think it likely that Target is accounting for those sales as a principal or an agent? Explain.



5. Disclosure Note 2 discusses Target’s accounting for gift card sales. Does Target recognize revenue when it sells a gift card to a customer? If not, when does it recognize revenue? Explain.



6. Disclosure Note 4 discussed how Target accounts for consideration received from vendors, which they call “vendor income.” Does that consideration produce revenue for Target? Does that consideration produce revenue for Target’s vendors? Explain.

Target Case (Static) [LO6-2, 6-6, 6-7]

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material also is available under the Investor Relations link at the company’s website (www.target.com).

Required:
1. On what line of Target’s income statement is revenue reported? What was the amount of revenue Target reported for the fiscal year ended February 3, 2018?



2. Disclosure Note 2 indicates that Target generally records revenue in retail stores at the point of sale. Does that suggest that Target generally records revenue at a point in time or over a period of time? Explain.



3. Disclosure Note 2 indicates that customers (“guests”) can return some merchandise within 90 days of purchase and can return other merchandise within a year of purchase. How is Target’s revenue and net income affected by returns, given that it does not know at the time a sale is made which items will be returned?



4. Disclosure Note 2 indicates that “Commissions earned on sales generated by leased departments are included within sales and were $44 million . . . in 2017.” Do you think it likely that Target is accounting for those sales as a principal or an agent? Explain.



5. Disclosure Note 2 discusses Target’s accounting for gift card sales. Does Target recognize revenue when it sells a gift card to a customer? If not, when does it recognize revenue? Explain.



6. Disclosure Note 4 discussed how Target accounts for consideration received from vendors, which they call “vendor income.” Does that consideration produce revenue for Target? Does that consideration produce revenue for Target’s vendors? Explain.

Retrenched Auto Body management wonders if the satisfaction rate (in %) of their customers depends on the length of time it takes to repair the automobile (in weeks). They arbitrarily keep one car for one week, another car for two weeks, another for three, and still another for four weeks, and then have the cars’ owners report their percentage level of satisfaction. Ignoring history or other test effects, determine the following:

1.         Compute (numerically) and interpret (in words) the correlation between satisfaction and           repair time

2.         Estimate the regression function between satisfaction and repair time

3.         If they kept a car for six weeks, what satisfaction level would the regression function predict?
   

Calculus
The marketing department for a cell phone telephone company has determined that the demand for their phone obeys the following relationship: p= -0.02+200 , (0 ≤ p ≤10,000) , where p denotes the phone’s unit price (in dollars) and x the quantity demanded. This type of question is much easier when you use your calculator, I just need to know what you did when you give me an answer using it,
(a) Express the revenue as a function of x: Round all of the following answers to the nearest penny when necessary.
(b) Find the rate of change in the revenue between the 2,000th and 4,000th phone.
(c) Find the rate in change of revenue from the sale of the 5,118th phone.
(d) Find the exact revenue from the sale of the 815th telephone.
(e) Use the marginal revenue function to estimate the revenue from the sale of the 815th phone. (f) Find the average revenue from the sale of 3000 phones.

Suppose that you are 23 years old, and making retirement plans. You are starting to contribute $550 per month to your retirement account at the beginning of each month. You intend to do so until the age of sixty three and then stop the contributions. You will retire at age 67. You receive a 6.5% APR compounded monthly on your account. Starting at age 67, what could you withdraw in terms of a monthly annuity until age 99 assuming you can get the same 6.5% APR on your money?

Group of answer choices

$10200-$10400                                                          

$9600-$9800

$10000-$10200

$9800-$10000

> $10400

• Describe TWO specific cellular mechanisms through which a bacterium can become resistant to an antibiotic. – Please note that this question is NOT about practices or actions we do that contribute to antibiotic resistance in bacteria, such as not taking the entire prescribed dose. Please remember that bacterial cells become resistant or tolerant to antibiotics, NOT human cells, or the human body. – *** Perform some research in the college's online library, a microbiology textbook, and other credible scientific sources of information.
• Explain the concepts of mutation and natural selection as part of the development of antibiotic resistance in bacteria.
• What are two or three actions that we, as a society, can take to limit or reduce antibiotic resistance in bacteria?

Q1)A compound of molar mass 213 contains only carbon, hydrogen, iodine, and oxygen. Analysis shows that a sample of the compound contains 6 times as much carbon as hydrogen, by mass.

Part A

Calculate the molecular formula of the compound.

Express your answer as a chemical formula. Enter the elements in the order: C, H, O, I.

Q2) A particular brand of beef jerky contains 6.01×10⁻²% sodium nitrite by mass and is sold in an 8.00-oz bag.

What mass of sodium does the sodium nitrite contribute to sodium content of the bag of beef jerky?

Express your answer to three significant figures and include the appropriate units.

Question:

Suppose you have organized another business under the name “PAPA’s Hotel & Restaurant” on December 1, 2019. In order to compete in the market, you have decided to avail of financing from Azizi Bank for further expansion. Bank requires a list of documents including financial statements for further process. The business transactions during the month of December are as follows:

Dec 01: You have invested cash of $2,500,000 in your business, PAPA’s Hotel & Restaurant.

Dec 01: Purchased hotel building for $550,000. Made a $180,000 cash down payment and issued a note payable for balance amount.

Dec 01: You have agreed with Unilever Corporation to provide meeting hall and charge fixed revenue of $5,000 per month. The entire six-month rent revenue of $30,000 was collected in advance and credited to Unearned Rent Revenue.

Dec 01: Purchased food items for the restaurant on credit $10,000

Dec 10: Received cash of $80,000 from customers as rent revenue from customers.

Dec 15: Paid $10,000 salary to employees for services during the first half of December.

Dec 18: Purchased restaurant supplies of $2,500 on account.

Dec 31: Paid cash $10,000 for food items purchased on Dec 01.

Dec 31: You withdrew $5,000 cash from the business for personal use.

As you are following the accrual basis of accounting so adjustments are needed as at December 31, 2019. The information regarding adjustments is as follows:

1. Salaries earned by employees but not paid amount to $10,000 for second half of Dec.
2. As of Dec. 31, you have earned $20,000 rent revenue but not received any amount yet.
3. On Dec 1, entire six-month rent revenue of $30,000 was collected in advance and credited to Unearned Rent Revenue. As at December 31, adjustment is needed.
4. A Toyota Corolla car had been rented on Dec 09, at daily rate of $80 to provide transportation facility. No rental payment has yet been made.
5. Depreciation on Hotel’s building is based on an estimated useful life of 15 years. The original cost of building was $550,000 and residual value of $50,000.

Instructions:

1. Prepare Journal Entries, Post to the ledger, Prepare Trial Balance, Prepare adjusting entries, and then Prepare adjusted Trial Balance
2. Prepare financial statements (balance sheet & income statement) as of December 31, 2019 based on above information as it is the compulsory requirement of Azizi bank.
3. Evaluate the financial position and profitability of your business?
4. If you have applied for the financing of $250,000, whether you are qualified against the collateral of hotel building as at December 31, 2019?

1)Lantz Company has provided the following information:

Cash sales totaled $200,000.

Credit sales totaled $480,000.

Cash collections from customers for services yet to be provided totaled $80,000.

A $16,000 loss from the sale of property and equipment occurred.

Interest income was $7,800.

Interest expense was $18,000.

Supplies expense was $300,000.

Rent expense for the store was $30,000.

Wages expense was $40,000.

Other operating expenses totaled $70,000.

Unearned revenue was 4,900.

What is the amount of Lantz’s income before income taxes?

2)

During 2016, Sensa Corporation incurred operating expenses amounting to $150,000 of which $90,000 was paid in cash; the balance will be paid during 2017. Which of the following is correct for the 2016 year-end balance sheet?

Stockholders' equity decreases $150,000, assets decrease $90,000, and liabilities increase $60,000.

Assets decrease $150,000, liabilities increase $60,000, and stockholders' equity decreases $150,000.

Stockholders' equity decreases $90,000 and assets decrease $90,000.

Assets decrease $150,000 and stockholders' equity decreases $150,000.

3)On December 31, 2016, Krug Company reported total liabilities of $190,000 prior to the following adjusting entries:

Depreciation expense: $41,000;

Accrued sales revenue: $39,000;

Accrued expenses: $28,000;

Used insurance: $7,000; the insurance was initially recorded as prepaid.

Rent revenue earned: $5,000; the rent was initially prepaid by the tenant and credited to unearned rent revenue.

How much are Krug's total liabilities after the adjusting entries?

$213,000.

$190,000.

$174,000.

$231,000.

4Lantz Company has provided the following information:

Cash sales totaled $370,000.

Credit sales totaled $497,000.

Cash collections from customers for services yet to be provided totaled $97,000.

A $22,000 loss from the sale of property and equipment occurred.

Interest income was $9,500.

Interest expense was $19,700.

Supplies expense was $440,000.

Rent expense for the store was $36,000.

Wages expense was $57,000.

Other operating expenses totaled $87,000.

Unearned revenue was $3,000.

What is the amount of Lantz’s income from operations (operating income)?

rev: 09_18_2017_QC_CS-100581

$184,800

$206,800

$225,000

$314,000

5)Top Company's 2016 sales revenue was $160,000 and 2015 sales revenue was $140,000. Top's total assets as of December 31, 2016 were $210,000 and total assets as of January 1, 2016 were $190,000. What is Top's total asset turnover ratio?

.79

.76

.85

.80

At June 30, 2017, the end of its most recent fiscal year, Green River Computer Consultants’ post-closing trial balance was as follows:

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Green River conducted the following transactions during July 2017, and adjusts its accounts monthly.

Adjustment data:

The chart of accounts for Green River Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense.

A. Prepare a trial balance at July 31st

B. Journalize and post closing entries and complete the closing proccess

C. Prepare a post-closing trial balance at July 31st.