Refer to Target Corporation's financial statements (http://www.targetcorp.com/targetcorp_group/investor-relations/investor-relations.jhtml) .
Target Corporation is currently seeking additional capital to expand its operations.
Two companies have shown interest in providing additional capital.
- Company #1 is interested in investing in the organization and, therefore, would like to have part ownership through the sale of new stock.
- Company #2 is interested in providing a loan to the Target Corporation.
Both organizations need to know more about the financial stability of Target. As an employee of Target, your supervisor needs you to write a memo in which you explain what information from the Target Corporation's financial statements will be highlighted when representatives of Target meet with each of these companies. In your memo, be sure to explain which information will be highlighted to Company #1 and which information will be highlighted to Company #2 and why. Explain any differences in the information that you have chosen to highlight. Identify the various user groups which need accounting information and the characteristics of the information that they need?
To: (Name of the supervisor)
From: (Your name and title)
Date: (Complete date)
Subject: Information to be highlighted for Target's expansion
There are two companies that have shown interest in providing additional capital, i.e.,
Company #1 is interested in investing in the organization and, therefore, would like to have part ownership through the sale of new stock, and company #2 is interested in providing a loan to the Target Corporation. Both organizations need to know more about the financial stability of Target in which we will highlighted the information of Target's financial situation as follows:
- For Company #1, they would be more concerned about the return that Target could generate for their shareholders. They would like to know how much earnings Target can generate by considering our past performance as well as future expected growth rate and earnings. ...
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