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(Solution) - Use the Target Corporation s annual report in Appendix B to 118181

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Use the Target Corporation?s annual report in Appendix B to answer the following questions. related to Target?s 2009 fiscal year.

a. What percentage of Target?s total assets was comprised of credit card receivables?
b. Approximately what percentage of credit card receivables did the company think will not be collected in 2009 and 2008?
c. What is Target?s policy regarding when to write off credit card receivables?
d. What percentage of Target?s total assets was comprised of inventory?
e. What cost flow method did Target use to account for its inventory?
f. Target had arrangements with some of its vendors such that it does not purchase or pay for merchandise inventory until the merchandise is sold to outside customers. Was the cost of these goods ever included in the Inventory account?


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