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    Target Corporation's Annual Report

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    Annual Report Project

    1. Identify and explain the main sections of Targetââ?¬â?¢s annual report.
    Financial Summary ââ?¬" This section reports the totalor per share amounts for five to ten financial items for the current year and one or more previous years. Financial items from the income statement and the banance sheet that typically are presented are sales, income from continuing operations, net income, net incom per share, net cash provided by operating activities, dividents per common share, and the amount of capital expenditures.

    Letter to Stockholders ââ?¬" This letter discusses the companyââ?¬â?¢s accomplishments fur the past year and highlights significant events such as mergers and acquisitiions, ned products, operating achievement, business philosophy, changes in officers or directors, financing commitments, expalsion plans, and future prospects.

    Managementââ?¬â?¢s Discussion and Analysis ââ?¬" This section covers three financial aspects of the company (e.g., results of operations, its ability to pay near-term obligations, and it ability to fund operations and expansion.. It also identifies favorable or unfavorable trends and identify significant events and uncertainties that affect these factoprs amd omvp;ves sibkectove esto,ates amd pbomopms. The higher-upsââ?¬â?¢ breakdown of the financial results and other factors that impact the companyââ?¬â?¢s operations.

    Financial statements and Accompanying Notes ââ?¬" A comparative income statement for three year period, comparative statement of cash flows for three years, a comparative balance sheet for two years, a statement of stoch holdersââ?¬â?¢ equity for three years, and a set of accompanying notes that are considered an integral part of the financial statements.

    Notes to the Financial Statements ââ?¬" Provides details about potential problems with the numbers or how the number were derived.

    Auditorââ?¬â?¢s report - Tells you whether the numbers are accurate and whether you should have any concerns about the future operation of the business.
    Financial statements ââ?¬" The balance sheet, the income statement, and the statement of cash flows; where you find the actual financial results for the year.

    Management Certification of Financial Statements - indicates that management is responsible for the integrity and presentation of the financial data and statements in accordance with GAAP and for the maintenance of a system of internal controls. These voluntary responsibility reports are not required by the SEC requirement and not found in 10-K reports, although they are found in some annual reports.

    Auditorââ?¬â?¢s Report - The auditor's report section of the annual report identifies the auditing CPA as well as internal accountants and managers responsible for the information in the report. The CPA auditor includes comments on the fairness of the report and how well the accounting adheres to generally accepted accounting principles.

    Managementââ?¬â?¢s Report on Internal Control - This section provides certification that the information contained in the report was authenticated by the company's executives.

    Supplementary Financial Information -

    2. What are the key factors that influenced their financial performance during the year?
    One of the key factors that influenced Targetââ?¬â?¢s financial performance in 2010 was the increase in the overall number of stores. Opening new stores helped improve the financial performance of the company. The presence of new stores meant additional income for Target because the customers had easier access to the companyââ?¬â?¢s products in various locations throughout the country. As previously mentioned, Colorado, North Dakota and Minnesota were the most profitable locations in 2010. Sixteen other locations had sales ranging from $201 to $299 per capita (Target Annual Report 2010). The consistent profitability of these stores strategically located all over the country certainly helped to improve the financial performance of Target in 2010.

    3. Identify and discuss the primary assets held by Target.
    The primary assets held by Target Corporation are, current assets of approximately $17 billion (this includes, cash, inventory, and other current assets). The stores of Target are certainly considered as primary assets held by Target. These stores have always been the most reliable sources of profit for the company every year. With the continued expansion of the number of stores, it is expected that they will keep on improving the long-term financial performance of the company. The inventory of Target can also be considered as primary assets of the company as they are products that are being sold which generates profit for the company (Stickney, 2009). The inventory of products includes clothing, health and beauty products, electronics, and hardware supplies. Property and equipment are about $25 billion (this includes land, buildings, fixtures, etc.).
    4. Explain how management characterizes the internal control environment of the company.
    The management of Target understands that they need excellent and reliable controls in their operations to be able to enhance their performance and improve their profitability. Thus, the management characterizes the internal control environment of the company as something that aids them in avoiding unnecessary losses incurred because of their failure to follow laws and policies. Targetââ?¬â?¢s internal control environment is made up of the company policies and rules established by the management that have to be followed by the employees when performing their responsibilities (Rowley, 2004). This way, the company is able to avoid paying hefty fines because of their violations. Target is able to avoid claims filed by unsatisfied customers because the products being sold by Target are always of high quality. Additionally, any defects or problems are easily identified by management through the internal control environment and they are immediately addressed.


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    Solution Summary

    Target Corporation's Annual Report