Did you know that AD can support dynamic linking of Excel tables between projects and Board Reports? If you have clients interested in this functionality, ActiveDisclosure's Document Solutions is available to demonstrate and assist.
Did you know that AD can support dynamic linking of Excel tables between projects and Board Reports? If you have clients interested in this functionality, ActiveDisclosure's Document Solutions is available to demonstrate and assist.
Abengoa Annual Report 2013 - Legal and Economic-Financial InformationAbengoa
Abengoa is committed to reporting its activities in a clear and transparent way. This is the third of four volumes that comprise Abengoa’s Annual Report.
Abengoa's Annual Legal and Economic-Financial Information Report contains the information about consolidated financial statements and consolidated management report.
Abengoa Annual Report 2013 - Legal and Economic-Financial InformationAbengoa
Abengoa is committed to reporting its activities in a clear and transparent way. This is the third of four volumes that comprise Abengoa’s Annual Report.
Abengoa's Annual Legal and Economic-Financial Information Report contains the information about consolidated financial statements and consolidated management report.
Once each year, a corporation communicates to its stockholders.docxvannagoforth
Once each year, a corporation communicates to its stockholders and other inter-
ested parties by issuing a complete set of audited ! nancial statements. The
annual report , as this communication is called, summarizes the ! nancial results
of the company’s operations for the year and its plans for the future. Many annual
reports are attractive, multicolored, glossy public relations pieces, containing
pictures of corporate of! cers and directors as well as photos and descriptions of
new products and new buildings. Yet the basic function of every annual report is
to report ! nancial information, almost all of which is a product of the corpora-
tion’s accounting system.
The content and organization of corporate annual reports have become fairly
standardized. Excluding the public relations part of the report (pictures, prod-
ucts, etc.), the following are the traditional ! nancial portions of the annual report:
• Financial Highlights
• Letter to the Stockholders
• Management’s Discussion and
Analysis
• Financial Statements
• Notes to the Financial
Statements
• Management’s Responsibility
for Financial Reporting
• Management’s Report on Internal
Control over Financial Reporting
• Report of Independent Registered
Public Accounting Firm
• Selected Financial Data
The of! cial SEC ! ling of the annual report is called a Form 10-K, which
often omits the public relations pieces found in most standard annual reports. On
the following pages, we present Apple Inc.’s ! nancial statements taken from the
company’s 2013 Form 10-K. To access Apple’s Form 10-K, including notes to the
! nancial statements, follow these steps:
1. Go to http://investor.apple.com.
2. Select the Financial Information tab.
3. Select the 10-K annual report dated September 28, 2013.
4. The Notes to Consolidated Financial Statements begin on page 50.
Specimen Financial
Statements: Apple Inc.
Appendix A
A-1
A-2 Appendix A Specimen Financial Statements: Apple Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except number of shares which are reflected in thousands and per share amounts)
See accompanying Notes to Consolidated Financial Statements.
Years ended
September 28, 2013 September 29, 2012 September 24, 2011
Net sales $ 170,910 $ 156,508 $ 108,249
Cost of sales 106,606 87,846 64,431
Gross margin 64,304 68,662 43,818
Operating expenses:
Research and development 4,475 3,381 2,429
Selling, general and administrative 10,830 10,040 7,599
Total operating expenses 15,305 13,421 10,028
Operating income 48,999 55,241 33,790
Other income/(expense), net 1,156 522 415
Income before provision for income taxes 50,155 55,763 34,205
Provision for income taxes 13,118 ...
Exercise 12-1Putnam Corporation had these transactions during 20.docxmodi11
Exercise 12-1
Putnam Corporation had these transactions during 2014.
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.
(a)
Purchased a machine for $30,000, giving a long-term note in exchange.
(b)
Issued $50,000 par value common stock for cash.
(c)
Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
(d)
Declared and paid a cash dividend of $13,000.
(e)
Sold a long-term investment with a cost of $15,000 for $15,000 cash.
(f)
Collected $16,000 of accounts receivable.
(g)
Paid $18,000 on accounts payable.
IFRS 13-1
Ling Company reports the following information for the year ended December 31, 2014: sales revenue $1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on non-trading securities of $75,000. Prepare a statement of comprehensive income using the one-statement approach.
LING COMPANY
Statement of Comprehensive Income
For the Year Ended December 31, 2014
$
$
$
$
$
$
:
$
$
2.
All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.
3.
To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.
4.
At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.
5.
The company accountant makes the bank deposit and then records the day’s receipts.
Broadening Your Perspective 13-2
The financial statements of
The Hershey Company
and
Tootsie Roll
are presented below.
THE HERSHEY COMPANY
CONSOLIDATED STATEMENTS OF INCOME
For the years ended December 31,
2011
2010
2009
In thousands of dollars except per share amounts
Net Sales
$6,080,788
$5,671,009
$5,298,668
Costs and Expenses:
Cost of sales
3,548,896
3,255,801
3,245,531
Selling, marketing and administrative
1,477,750
1,426,477
1,208,672
Business realignment and impairment (credits) charges, net
(886
)
83,433
82,875
Total costs and expenses
5,025,760
4,765,711
4,537,078
Income before Interest and Income Taxes
1,055,028
905,298
761,590
Interest expense, net
92,183
96,434
90,459
Income before Income Taxes
962,845
808,864
671,131
Provision for income taxes
333,883
299,065
235,137
Net Income
$628,962
$509,799
$435,994
Net Income Per Share—Basic—Class B Common Stock
$2.58
$2.08
$1.77
Net Income Per Share—Diluted—Class B Common Stock
$2.56
$2.07
$1.77
Net Income Per Share—Basic—Common Stock
$2.85
$2.29
$1.97
Net Income Per Share—Diluted—Common Stock
$2.74
$2.21
$1.90
Cash Dividends Paid Per Share:
Common St ...
Exercise 12-1Putnam Corporation had these transactions during 20.docxgitagrimston
Exercise 12-1
Putnam Corporation had these transactions during 2014.
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.
(a)
Purchased a machine for $30,000, giving a long-term note in exchange.
(b)
Issued $50,000 par value common stock for cash.
(c)
Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
(d)
Declared and paid a cash dividend of $13,000.
(e)
Sold a long-term investment with a cost of $15,000 for $15,000 cash.
(f)
Collected $16,000 of accounts receivable.
(g)
Paid $18,000 on accounts payable.
IFRS 13-1
Ling Company reports the following information for the year ended December 31, 2014: sales revenue $1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on non-trading securities of $75,000. Prepare a statement of comprehensive income using the one-statement approach.
LING COMPANY
Statement of Comprehensive Income
For the Year Ended December 31, 2014
$
$
Problem 12-9A
Condensed financial data of Odgers Inc. follow.
ODGERS INC.Comparative Balance Sheets
December 31
Assets
2014
2013
Cash
$ 127,664
$ 76,472
Accounts receivable
138,724
60,040
Inventory
177,750
162,503
Prepaid expenses
44,872
41,080
Long-term investments
218,040
172,220
Plant assets
450,300
383,150
Accumulated depreciation
(79,000
)
(82,160
)
Total
$1,078,350
$813,305
Liabilities and Stockholders’ Equity
Accounts payable
$ 161,160
$ 106,334
Accrued expenses payable
26,070
33,180
Bonds payable
173,800
230,680
Common stock
347,600
276,500
Retained earnings
369,720
166,611
Total
$1,078,350
$813,305
ODGERS INC.Income Statement Data
For the Year Ended December 31, 2014
Sales revenue
$613,767
Less:
Cost of goods sold
$214,027
Operating expenses, excluding depreciation
19,608
Depreciation expense
73,470
Income tax expense
43,102
Interest expense
7,473
Loss on disposal of plant assets
11,850
369,530
Net income
$ 244,237
Additional information:
1.
New plant assets costing $158,000 were purchased for cash during the year.
2.
Old plant assets having an original cost of $90,850 and accumulated depreciation of $76,630 were sold for $2,370 cash.
3.
Bonds payable matured and were paid off at face value for cash.
4.
A cash dividend of $41,128 was declared and paid during the year.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
ODGERS INC.Statement of Cash Flows
For the Year Ended December 31, 2014
$
Adjustments to reconcile net income to
$
...
Exercise 11-5Garcia Corporation recently hired a new accountant w.docxmodi11
*Exercise 11-5
Garcia Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation’s capital stock.
May 2
Cash
93,470
Capital Stock
93,470
(Issued 7,190 shares of $11 par value common stock at $13 per share)
10
Cash
560,040
Capital Stock
560,040
(Issued 10,770 shares of $16 par value preferred stock at $52 per share)
15
Capital Stock
8,800
Cash
8,800
(Purchased 800 shares of common stock for the treasury at $11 per share)
On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions.
(Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
*Exercise 11-7
On October 31, the stockholders’ equity section of Pele Company’s balance sheet consists of common stock $488,400 and retained earnings $432,000.
Pele is considering the following two courses of action:
(1)
Declaring a 7% stock dividend on the 81,400 $6 par value shares outstanding
(2)
Effecting a 2-for-1 stock split that will reduce par value to $3 per share.
The current market price is $13 per share.
Prepare a tabular summary of the effects of the alternative actions on the company’s stockholders’ equity and outstanding shares.
Pele Company’s
Balance Sheet
Before Action
After Stock Dividend
After Stock Split
Stockholders’ equity
Paid-in capital
$
[removed]
$
[removed]
$
[removed]
Retained earnings
[removed]
[removed]
[removed]
Total stockholders’ equity
$
[removed]
$
[removed]
$
[removed]
Outstanding shares
[removed]
[removed]
[removed]
roadening Your Perspective 11-1
The stockholders’ equity section of Tootsie Roll Industries’ balance sheet is shown in the Consolidated Statement of Financial Position.
(Note that Tootsie Roll has two classes of common stock. To answer the following questions, add the two classes of stock together.)
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
For the year ended December 31,
2011
2010
2009
Net product sales
$528,369
$517,149
$495,592
Rental and royalty revenue
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
Product cost of goods sold
365,225
349,3 ...
Brief Exercise 9-11Suppose Nike, Inc. reported the followin.docxCruzIbarra161
*Brief Exercise 9-11
Suppose
Nike, Inc.
reported the following plant assets and intangible assets for the year ended May 31, 2014 (in millions): other plant assets $954.9; land $226.7; patents and trademarks (at cost) $530.7; machinery and equipment $2,137.2; buildings $967; goodwill (at cost) $207.5; accumulated amortization $59.3; and accumulated depreciation $2,290.
Prepare a partial balance sheet for Nike for these items.
(List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
NIKE, INC.
Partial Balance Sheet
As of May 31, 2014
(in millions)
[removed]
[removed]
$
[removed]
[removed]
$
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
:
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
$
[removed]
[removed]
:
[removed]
[removed]
[removed]
[removed]
*Exercise 9-7
Wang Co. has delivery equipment that cost $50,840 and has been depreciated $24,960.
Record entries for the disposal under the following assumptions.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a)
It was scrapped as having no value.
(b)
It was sold for $37,200.
(c)
It was sold for $19,360.
No.
Account Titles and Explanation
Debit
Credit
(a)
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(b)
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(c)
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
*Exercise 9-8
Here are selected 2014 transactions of Cleland Corporation.
Jan. 1
Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $62,160 and had a useful life of 10 years with no salvage value.
June 30
Sold a computer that was purchased on January 1, 2012. The computer cost $37,000 and had a useful life of 4 years with no salvage value. The computer was sold for $5,630 cash.
Dec. 31
Sold a delivery truck for $9,310 cash. The truck cost $23,600 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $3,290 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Cleland Corporation uses straight-line depreciation.
(Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
(To record depreciation expense for the first 6 months of 2014)
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[removed]
[remo.
BTE 302TEST 1NameCMR 302Test IAnswer the Following.docxcurwenmichaela
BTE 302
TEST 1
Name:
CMR 302
Test I
Answer the Following
1. What are the five accounting classifications?
2. What accounting classifications are displayed on the Balance Sheet?
3. Give two examples of a Current Asset
4. What type of an asset is the account Patent?
5. What is the definition of non-current asset?
6. Classify the account Notes Payable (90 days).
7. How do you calculate Gross Profit
8. How do you calculate Operating Income?
9. List an example of a non-operating income.
10. What classification is the account Retained Earnings?
Circle the Correct Answer. SHOW YOUR WORK Where Required
1. Gilbert, Inc. had the following account balances at September 30, 2010. What is Gilbert's net income for the month of September?
Cost of Sales 10,000
Cash 14,300
Equipment 15,400
Fees Earned 54,400
Miscellaneous Expense 18,200
Rent Expense 2,000
Retained Earnings 6,550
Wages Expense 13,900
a) $32,450
b) $10,300 SHOW YOUR WORK
c) $20,300
d) $1 8, 1 50
2. Sales = $10,000, Cost of Sales = $4,000, Operating Expenses = $ 1,000, Other Expenses = $ 2,000. What is the Gross Profit?
___________________________ SHOW YOUR WORK
3. NBC Company had $32,000 in net sales, $15,000 in cost of merchandise sold, $18,000 in operating expenses, and $2,000 in other income. What is NBC Company's operating profit?
a) $17,000
b) $3,000 SHOW YOUR WORK
c) $1,000
d) ($1, 000)
4. Expenses that CANNOT be traced directly to operations are identified as
a) Other income.
b) Operating expenses.
c) Cost of goods sold.
d) Other expenses.
5. On the Statement of Cash Flows, where is the purchase of property, plant and equipment recorded?
____________________________
6. On the Statement of Cash Flows, where are dividends recorded?
_____________________________
7. Assets = $ 13,000 Equity = $ 4,000 Liabilities = __________________
8. Liabilities = 4,000 Assets = $ 8,000 Equity = __________________
The Economy (Fill-In)
1. Which indicator is the best indicator of consumer inflation?
2. Which indicator measures employee hourly wages?
3. Which indicator is a leading indicator of economic growth
4. What can an increase in inventories mean?
5. Which economic theory believes that the government should intervene during a fiscal crisis?
Domino's Pizza (Fill-In)
Use the Domino's Pizza Statement of Cash Flows listed below to answer the following questions.
Omit trailing zeros when entering data. Use brackets ( ) to indicate cash used in the statement.
1. 2012 Cash Flow from Operations
2. 2013 Cash Flow from Investing
3. 2014 Cash Flow from Financing
4. What was the primary Investing activity and the amount for 2013?
5. What was the primary Financing activity and the amount for 2012?
6. The company borrowed funds in 2013 T F
7. The company paid dividends in 2012 T F
8. The company had a positive cash flow from Financing in 2013: T F
9. What was the highest amount borrowed over the three year period?
Domino's Pizza, Inc. (DPZ)
110.77 1.05(0.94%)
Period Ending
D.
Name: Date:
Target Corporation Case
Answers and Analysis
Target Corporation (Target) operates large general merchandise and food discount stores in all of the
United States, with the exception of Alaska Hawaii, and Vermont. The company also has its own credit
card operations and operates a fully integrated online business, target.com. Although the online portion of
target’s business is small relative to the overall size of target, sales are growing at a more rapid pace in the
online business compared to the in-store sales. The company’s philosophy is to offer their customers a
delightful shopping experience and their team members a preferred place to work, and to invest in the
communities in which target conducts business to improve quality of life. Selected information from the
2007 form 10-k of Target Corporation is on pages 228-237.
Required:
1. Analyze the firm’s financial statements and supplementary information. Your analysis should include
the preparation of common-size financial statements, key financial ratios, and an evaluation of
short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, and
market measures.
2. Identify the strengths and weaknesses of the company.
3. What is your opinion of the investment potential and the creditworthiness of Target Corporation?
Company Overview:
Target Corporation (Target or ‘the company’) operates large format general merchandise and food
discount stores in the US, which include Target and Super Target stores. The company offers both
everyday essentials and fashionable merchandise. Target is headquartered in Minneapolis, Minnesota
and employs 366,000 people. The company recorded revenues of $63,367 million in the fiscal year
ended January 2008, an increase of 6.5% over 2007. The operating profit of the company was $5,272
million in the fiscal year 2008, an increase of 4% over 2007. The net profit was $2,849 million in the
fiscal year 2008, an increase of 2.2% over 2007.
Target Corporation
Consolidated Balance Sheets and common-size Balance Sheets
(In millions, except share and per share date)
Period End Date
2008
02/02/2008
2007
02/03/2007
Assets
Cash and Short Term Investments 2,450.00 12.96% 813 5.53%
Cash & Equivalents 599 3.17% 813 5.53%
Short Term Investments 1,851.00 9.79% 0 0.00%
Total Receivables, Net 8,651.00 45.76% 6,757.00 45.95%
Accounts Receivable - Trade, Net 8,054.00 42.60% 6,194.00 42.12%
Accounts Receivable - Trade, Gross 8,624.00 45.62% 6,711.00 45.63%
Provision for Doubtful Accounts -570 -3.01% -517 -3.52%
Receivables - Other 597 3.16% 563 3.83%
Total Inventory 6,780.00 35.86% 6,254.00 42.53%
Prepaid Expenses 0 0.00% 0 0.00%
Other Current Assets, Total 1,025.00 5.42% 882 6.00%
Total Current Assets 18,906.00 100.00% 14,706.00 100.00%
Property/Plant/Equipment, Total - Net 24,095.00 127.45% 21.
Name: Date:
Target Corporation Case
Answers and Analysis
Target Corporation (Target) operates large general merchandise and food discount stores in all of the
United States, with the exception of Alaska Hawaii, and Vermont. The company also has its own credit
card operations and operates a fully integrated online business, target.com. Although the online portion of
target’s business is small relative to the overall size of target, sales are growing at a more rapid pace in the
online business compared to the in-store sales. The company’s philosophy is to offer their customers a
delightful shopping experience and their team members a preferred place to work, and to invest in the
communities in which target conducts business to improve quality of life. Selected information from the
2007 form 10-k of Target Corporation is on pages 228-237.
Required:
1. Analyze the firm’s financial statements and supplementary information. Your analysis should include
the preparation of common-size financial statements, key financial ratios, and an evaluation of
short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, and
market measures.
2. Identify the strengths and weaknesses of the company.
3. What is your opinion of the investment potential and the creditworthiness of Target Corporation?
Company Overview:
Target Corporation (Target or ‘the company’) operates large format general merchandise and food
discount stores in the US, which include Target and Super Target stores. The company offers both
everyday essentials and fashionable merchandise. Target is headquartered in Minneapolis, Minnesota
and employs 366,000 people. The company recorded revenues of $63,367 million in the fiscal year
ended January 2008, an increase of 6.5% over 2007. The operating profit of the company was $5,272
million in the fiscal year 2008, an increase of 4% over 2007. The net profit was $2,849 million in the
fiscal year 2008, an increase of 2.2% over 2007.
Target Corporation
Consolidated Balance Sheets and common-size Balance Sheets
(In millions, except share and per share date)
Period End Date
2008
02/02/2008
2007
02/03/2007
Assets
Cash and Short Term Investments 2,450.00 12.96% 813 5.53%
Cash & Equivalents 599 3.17% 813 5.53%
Short Term Investments 1,851.00 9.79% 0 0.00%
Total Receivables, Net 8,651.00 45.76% 6,757.00 45.95%
Accounts Receivable - Trade, Net 8,054.00 42.60% 6,194.00 42.12%
Accounts Receivable - Trade, Gross 8,624.00 45.62% 6,711.00 45.63%
Provision for Doubtful Accounts -570 -3.01% -517 -3.52%
Receivables - Other 597 3.16% 563 3.83%
Total Inventory 6,780.00 35.86% 6,254.00 42.53%
Prepaid Expenses 0 0.00% 0 0.00%
Other Current Assets, Total 1,025.00 5.42% 882 6.00%
Total Current Assets 18,906.00 100.00% 14,706.00 100.00%
Property/Plant/Equipment, Total - Net 24,095.00 127.45% 21 ...
Name: Date:
Target Corporation Case
Answers and Analysis
Target Corporation (Target) operates large general merchandise and food discount stores in all of the
United States, with the exception of Alaska Hawaii, and Vermont. The company also has its own credit
card operations and operates a fully integrated online business, target.com. Although the online portion of
target’s business is small relative to the overall size of target, sales are growing at a more rapid pace in the
online business compared to the in-store sales. The company’s philosophy is to offer their customers a
delightful shopping experience and their team members a preferred place to work, and to invest in the
communities in which target conducts business to improve quality of life. Selected information from the
2007 form 10-k of Target Corporation is on pages 228-237.
Required:
1. Analyze the firm’s financial statements and supplementary information. Your analysis should include
the preparation of common-size financial statements, key financial ratios, and an evaluation of
short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, and
market measures.
2. Identify the strengths and weaknesses of the company.
3. What is your opinion of the investment potential and the creditworthiness of Target Corporation?
Company Overview:
Target Corporation (Target or ‘the company’) operates large format general merchandise and food
discount stores in the US, which include Target and Super Target stores. The company offers both
everyday essentials and fashionable merchandise. Target is headquartered in Minneapolis, Minnesota
and employs 366,000 people. The company recorded revenues of $63,367 million in the fiscal year
ended January 2008, an increase of 6.5% over 2007. The operating profit of the company was $5,272
million in the fiscal year 2008, an increase of 4% over 2007. The net profit was $2,849 million in the
fiscal year 2008, an increase of 2.2% over 2007.
Target Corporation
Consolidated Balance Sheets and common-size Balance Sheets
(In millions, except share and per share date)
Period End Date
2008
02/02/2008
2007
02/03/2007
Assets
Cash and Short Term Investments 2,450.00 12.96% 813 5.53%
Cash & Equivalents 599 3.17% 813 5.53%
Short Term Investments 1,851.00 9.79% 0 0.00%
Total Receivables, Net 8,651.00 45.76% 6,757.00 45.95%
Accounts Receivable - Trade, Net 8,054.00 42.60% 6,194.00 42.12%
Accounts Receivable - Trade, Gross 8,624.00 45.62% 6,711.00 45.63%
Provision for Doubtful Accounts -570 -3.01% -517 -3.52%
Receivables - Other 597 3.16% 563 3.83%
Total Inventory 6,780.00 35.86% 6,254.00 42.53%
Prepaid Expenses 0 0.00% 0 0.00%
Other Current Assets, Total 1,025.00 5.42% 882 6.00%
Total Current Assets 18,906.00 100.00% 14,706.00 100.00%
Property/Plant/Equipment, Total - Net 24,095.00 127.45% 21.
Name: Date:
Target Corporation Case
Answers and Analysis
Target Corporation (Target) operates large general merchandise and food discount stores in all of the
United States, with the exception of Alaska Hawaii, and Vermont. The company also has its own credit
card operations and operates a fully integrated online business, target.com. Although the online portion of
target’s business is small relative to the overall size of target, sales are growing at a more rapid pace in the
online business compared to the in-store sales. The company’s philosophy is to offer their customers a
delightful shopping experience and their team members a preferred place to work, and to invest in the
communities in which target conducts business to improve quality of life. Selected information from the
2007 form 10-k of Target Corporation is on pages 228-237.
Required:
1. Analyze the firm’s financial statements and supplementary information. Your analysis should include
the preparation of common-size financial statements, key financial ratios, and an evaluation of
short-term liquidity, operating efficiency, capital structure and long-term solvency, profitability, and
market measures.
2. Identify the strengths and weaknesses of the company.
3. What is your opinion of the investment potential and the creditworthiness of Target Corporation?
Company Overview:
Target Corporation (Target or ‘the company’) operates large format general merchandise and food
discount stores in the US, which include Target and Super Target stores. The company offers both
everyday essentials and fashionable merchandise. Target is headquartered in Minneapolis, Minnesota
and employs 366,000 people. The company recorded revenues of $63,367 million in the fiscal year
ended January 2008, an increase of 6.5% over 2007. The operating profit of the company was $5,272
million in the fiscal year 2008, an increase of 4% over 2007. The net profit was $2,849 million in the
fiscal year 2008, an increase of 2.2% over 2007.
Target Corporation
Consolidated Balance Sheets and common-size Balance Sheets
(In millions, except share and per share date)
Period End Date
2008
02/02/2008
2007
02/03/2007
Assets
Cash and Short Term Investments 2,450.00 12.96% 813 5.53%
Cash & Equivalents 599 3.17% 813 5.53%
Short Term Investments 1,851.00 9.79% 0 0.00%
Total Receivables, Net 8,651.00 45.76% 6,757.00 45.95%
Accounts Receivable - Trade, Net 8,054.00 42.60% 6,194.00 42.12%
Accounts Receivable - Trade, Gross 8,624.00 45.62% 6,711.00 45.63%
Provision for Doubtful Accounts -570 -3.01% -517 -3.52%
Receivables - Other 597 3.16% 563 3.83%
Total Inventory 6,780.00 35.86% 6,254.00 42.53%
Prepaid Expenses 0 0.00% 0 0.00%
Other Current Assets, Total 1,025.00 5.42% 882 6.00%
Total Current Assets 18,906.00 100.00% 14,706.00 100.00%
Property/Plant/Equipment, Total - Net 24,095.00 127.45% 21.
Exercise 8-4The ledger of Wainwright Company at the end of the c.docxgitagrimston
Exercise 8-4
The ledger of Wainwright Company at the end of the current year shows Accounts Receivable $76,000; Credit Sales $986,000; and Sales Returns and Allowances $42,200. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a)
If Wainwright uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Wainwright determines that Hiller’s $1,000 balance is uncollectible.
(b)
If Allowance for Doubtful Accounts has a credit balance of $1,200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable.
(c)
If Allowance for Doubtful Accounts has a debit balance of $950 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable.
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
(c)
Exercise 8-11
Suppose the following information was taken from the 2014 financial statements of FedEx Corporation, a major global transportation/delivery company.
(in millions)
2014
2013
Accounts receivable (gross)
$ 3,678
$ 4,608
Accounts receivable (net)
3,374
4,330
Allowance for doubtful accounts
304
278
Sales revenue
34,275
37,054
Total current assets
7,104
7,206
Answer each of the following questions.
Calculate the accounts receivable turnover and the average collection period for 2014 for FedEx. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)
Accounts receivable turnover
times
The average collection period for 2014
days
Broadening Your Perspective 8-1
The financial statements of Tootsie Roll are presented below.
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
For the year ended December 31,
2011
2010
2009
Net product sales
$528,369
$517,149
$495,592
Rental and royalty revenue
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
Product cost of goods sold
365,225
349,334
319,775
Rental and royalty cost
1,038
1,088
852
Total costs
366,263
350,422
320,627
Product gross margin
163,144
167,815
175,817
Rental and royalty gross margin
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
Selling, marketing and administrative expenses
108,276
106,316
103,755
Impairment charges
—
—
14,000
Earnings from operations
57,966
64,710
60,949
Other income (expense), net
2,946
8,358
2,100
Earnings before income taxes
60,912
73,068
63,049
Provision for income taxes
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
Other comprehensive earnings (loss)
(8,740
)
1,183
2,845
Comprehensive earnings
...
Exercise 8-4The ledger of Wainwright Company at the end of the c.docx
EXHIBIT A
1. EXHIBIT A
(Balance Sheets)
Annual Data
In Millions of USD (except for per share items) As of 2013-12-31 As of 2012-12-31 As of 2011-12-31
Cash & Equivalents 2,844.00 2,416.00 2,657.00
Short Term Investments 959.00 958.00 958.00
Cash and Short Term Investments 3,803.00 3,374.00 3,615.00
Accounts Receivable - Trade, Net 1,609.00 1,693.00 1,563.00
Receivables - Other - - -
Total Receivables, Net 1,609.00 1,693.00 1,563.00
Total Inventory 1,063.00 1,023.00 367.00
Prepaid Expenses 733.00 1,344.00 1,418.00
Other Current Assets, Total 2,443.00 838.00 766.00
Total Current Assets 9,651.00 8,272.00 7,729.00
Property/Plant/Equipment, Total - Gross 29,646.00 27,369.00 25,695.00
Accumulated Depreciation, Total -7,792.00 -6,656.00 -5,472.00
Goodwill, Net 9,794.00 9,794.00 9,794.00
Intangibles, Net 4,658.00 4,679.00 4,751.00
2. In Millions of USD (except for per share items) As of 2013-12-31 As of 2012-12-31 As of 2011-12-31
Long Term Investments - - -
Other Long Term Assets, Total 6,295.00 1,092.00 1,002.00
Total Assets 52,252.00 44,550.00 43,499.00
Accounts Payable 2,300.00 2,293.00 1,600.00
Accrued Expenses 2,901.00 2,808.00 3,234.00
Notes Payable/Short Term Debt 0.00 0.00 0.00
Current Port. of LT Debt/Capital Leases 1,547.00 1,627.00 1,944.00
Other Current liabilities, Total 7,404.00 6,542.00 5,923.00
Total Current Liabilities 14,152.00 13,270.00 12,701.00
Long Term Debt 9,795.00 11,082.00 11,847.00
Capital Lease Obligations - - -
Total Long Term Debt 9,795.00 11,082.00 11,847.00
Total Debt 11,342.00 12,709.00 13,791.00
Deferred Income Tax 0.00 2,047.00 2,028.00
Minority Interest - - -
Other Liabilities, Total 16,662.00 20,282.00 18,319.00
Total Liabilities 40,609.00 46,681.00 44,895.00
Redeemable Preferred Stock, Total - - -
Preferred Stock - Non Redeemable, Net - - -
Common Stock, Total 0.00 - 0.00
Additional Paid-In Capital 13,982.00 14,069.00 13,999.00
Retained Earnings (Accumulated Deficit) 3,049.00 -7,389.00 -8,398.00
Treasury Stock - Common -258.00 -234.00 -231.00
Other Equity, Total -5,130.00 -8,577.00 -6,766.00
Total Equity 11,643.00 -2,131.00 -1,396.00
3. In Millions of USD (except for per share items) As of 2013-12-31 As of 2012-12-31 As of 2011-12-31
Total Liabilities & Shareholders' Equity 52,252.00 44,550.00 43,499.00
Shares Outs - Common Stock Primary Issue - - -
Total Common Shares Outstanding 851.44 851.40 845.25
Google Finance Beta
(Income Statement)
Annual Data
In Millions of USD (except
for per share items)
12 months ending
2013-12-31
12 months ending
2012-12-31
12 months ending
2011-12-31
12 months ending
2010-12-31
Revenue 37,773.00 36,670.00 35,115.00 31,755.00
Other Revenue, Total - - - -
Total Revenue 37,773.00 36,670.00 35,115.00 31,755.00
Cost of Revenue, Total 20,755.00 21,386.00 20,609.00 16,971.00
Gross Profit 17,018.00 15,284.00 14,506.00 14,784.00
Selling/General/Admin.
Expenses, Total
9,532.00 9,128.00 8,874.00 8,647.00
4. In Millions of USD (except
for per share items)
12 months ending
2013-12-31
12 months ending
2012-12-31
12 months ending
2011-12-31
12 months ending
2010-12-31
Research & Development - - - -
Depreciation/Amortization 1,658.00 1,565.00 1,523.00 1,511.00
Interest Expense(Income) -
Net Operating
- - - -
Unusual Expense (Income) 402.00 570.00 310.00 841.00
Other Operating Expenses,
Total
2,026.00 1,964.00 1,892.00 1,959.00
Total Operating Expense 34,373.00 34,613.00 33,208.00 29,929.00
Operating Income 3,400.00 2,057.00 1,907.00 1,826.00
Interest Income(Expense),
Net Non-Operating
- - - -
Gain (Loss) on Sale of
Assets
- - - -
Other, Net -21.00 -27.00 -44.00 -33.00
Income Before Tax 2,527.00 1,025.00 769.00 608.00
Income After Tax 10,540.00 1,009.00 854.00 593.00
Minority Interest - - - -
Equity In Affiliates - - - -
Net Income Before Extra.
Items
10,540.00 1,009.00 854.00 593.00
Accounting Change - - - -
Discontinued Operations - - - -
Extraordinary Item - - - -
Net Income 10,540.00 1,009.00 854.00 593.00
Preferred Dividends - - - -
5. In Millions of USD (except
for per share items)
12 months ending
2013-12-31
12 months ending
2012-12-31
12 months ending
2011-12-31
12 months ending
2010-12-31
Income Available to
Common Excl. Extra Items
10,540.00 1,009.00 854.00 593.00
Income Available to
Common Incl. Extra Items
10,540.00 1,009.00 854.00 593.00
Basic Weighted Average
Shares
- - - -
Basic EPS Excluding
Extraordinary Items
- - - -
Basic EPS Including
Extraordinary Items
- - - -
Dilution Adjustment - - - -
Diluted Weighted Average
Shares
858.00 850.00 844.00 843.00
Diluted EPS Excluding
Extraordinary Items
12.28 1.19 1.01 0.70
Diluted EPS Including
Extraordinary Items
- - - -
Dividends per Share -
Common Stock Primary
Issue
0.12 0.00 0.00 0.00
Gross Dividends - Common
Stock
- - - -
Net Income after Stock
Based Comp. Expense
- - - -
Basic EPS after Stock Based
Comp. Expense
- - - -
6. In Millions of USD (except
for per share items)
12 months ending
2013-12-31
12 months ending
2012-12-31
12 months ending
2011-12-31
12 months ending
2010-12-31
Diluted EPS after Stock
Based Comp. Expense
- - - -
Depreciation, Supplemental - - - -
Total Special Items - - - -
Normalized Income Before
Taxes
- - - -
Effect of Special Items on
Income Taxes
- - - -
Income Taxes Ex. Impact of
Special Items
- - - -
Normalized Income After
Taxes
- - - -
Normalized Income Avail to
Common
- - - -
Basic Normalized EPS - - - -
Diluted Normalized EPS 12.59 1.85 1.27 1.85
Google Finance Beta