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$($Target Corporation$)$

Stockholders' Equity

Determine how your company got its initial financial start in terms of debt $($liabilities$)$ or equity $($capital$).$ Support your response.

Analyze the equity section of your company's balance sheet as compared to your company's industry average. Rate the company's performance against its competitors.

Review your company's dividend policy and its history. Based on the information, discuss the trends over the past year.

Income Measurement$/$Revenue Recognition

Financial Accounting Standards Board $($FASB$)$ and the International Accounting Standards Board $($IASB$)$ came together on a unified project to outline the accounting principles for recognizing revenue and to develop a common revenue standard for U$.$S$.$ GAAP and IFRS. Research IAS$-18,$ Revenue, and discuss how it would apply to your company.

Review your company's revenue over the past two years. Analyze the change in revenue $($increase$/$decrease$)$ and give the reasons for this change.

Reflecting upon your company's balance sheet, identify the unearned revenue accounts listed. How does your company handle the proper accounting treatment with regard to recognizing revenue from unearned revenue accounts?

Income Statements

Financial Results $($in millions$)202220212020$

Total Revenue $109,120106,00593,561$

Cost of Revenue $84,61477,30768,181$

Gross Profit $28,69825,38020,891$

Research and Development $000$

Sales, General, and Admin. $20,65819,75218,615$

Non$-$Recurring Items $000$

Other Operating Items $1,5321,3941,161$

Operating Income $3,8488,9466,539$

Additional Income$/$Expense Items $-48-38216$

Earnings Before Tax $3,4188,9075,546$

Income Tax $1,9611,178921$

Minority Interest $000$

Equity Earnings$/$Loss Unconsolidated Subsidiary $000$

Net Income$-$Cont. Operations $2,7806,9464,368$

Net Income $2,7806,9464,368$

Net Income Applicable to Common Shareholders $2,7806,9464,368$

Balance Sheet

Current Assets

Cash and Cash Equivalents $2,2295,9118,511$

Short$-$Term Investments $1,3434,9857,644$

Net Receivables $000$

Inventory $13,49913,90210,653$

Other Current Assets $423407457$

Total Current Assets $17,84621,57320,756$

Long$-$Term Assets

Long$-$Term Investments $447605638$

Fixed Assets $31,51228,18126,879$

Goodwill $631631631$

Intangible Assets $645656668$

Other Assets $22824080$

Deferred Asset Changes $000$

Total Assets $53,33553,81151,248$

Current Liabilities

Accounts Payable $11,88715,47812,859$

Short$-$Term Debt $/$ Current Portion of Long$-$Term Debt $2,0264251,355$

Other Current Liabilities $5,5875,8445,438$

Total Current Liabilities $19,50021,74720,125$

Long$-$Term Debt $18,64716,04213,754$

Other Liabilities $1,7231,5841,882$

Deferred Liability Charges $449479509$

Misc. Stocks $000$

Minority Interest $000$

Total Liabilities $42,10340,98436,808$

Stock$-$Holders Equity

Common Stocks $383942$

Capital Surplus $6,6086,4216,329$

Retained Earnings $5,0056,9208,825$

Treasury Stock $000$

Other Equity $-396-534-738$

Total Equity $11,23212,82714,440$

Total Liabilities & Equity $53,33553,81151,248$

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