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Target's 2012 Financial Report

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Target Corporation is a worldwide retail store, this industry has affected multiple competitors closing them down due to economic difficulties. Target decided to make a change on their operation module to boost sales and help them stay afloat. In the 2016 Financial Statement, Target stated that their inventory method that is currently being used. This method is called: Retail Inventory Accounting Method known as (RIM), this method it is common amongst these types of corporations because of it practicality. Target also uses the LIFO method known as Last-In, Frist-Out, this helps them stay on top of their inventory. Going over the annual report well help decide if this change has help Target to make any more changes
After reviewing Target’s 2016 Annual Report, I was able to find that Target values its inventory at the lower cost or market. This process helps figure out the new retail price of the merchandise after time. Most of the inventory changes in prices with time. They value of a product might change when the vendor increases or reduces their prices, and this will help keep they prices at the Target stores at the current market price. The …show more content…

To be able to calculate this information, we use the cost of goods sold formula: Cost of Goods Sold = Ending Merchandise Inventory ($2,737,000) + Cost of Goods Sold ($48,872,000) – Beginning Merchandise Inventory ($3,363,000) = Net Purchases $48,246,000 totaled for 2016 fiscal year. (Horngren’s Accounting pg. The strength that Target has at its benefit is the agreements they arrange with the vendors to pay as they sale. They don’t buy the merchandise from the vendor until it is sold at the retail store. I don’t see any weakness with the strategy Target Corporation uses in their accounting financials. There is another competitor that also uses the same inventory method and values its inventory at the lower cost or

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Kroger estimates that approximately 95% of their inventories in 2015 were valued using the LIFO method. Cost for the remainder of their inventories, including almost all fuel inventories, was determined using the First in First Out (FIFO) method. Kroger utilizes the Item Cost Method to determine its inventory cost before the LIFO adjustment for their store inventories. The reason Kroger employs the item-cost method of accounting is that it allows Kroger a more accurate reporting strategy for periodic inventory balances. Another reason Kroger uses this method is most of their inventory is finished goods and can recorded items at actual purchase costs.

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Target Corporation (TGT) is an international general merchandise and grocery retailer founded in Minneapolis, Minnesota that works to ensure that the customer is provided with the opportunity to purchase a wide variety of goods such as household products, electronics, pharmacy, personal care products, grocery goods, clothing apparel, and sporting goods in order to achieve customer satisfaction at a discounted price in order to remain competitive within the industry. The primary goal for Target is to overcome their various competitors within the industry in order to generate profit through continuous innovation and delivering outstanding value at each Target location in order to be the preferred shopping destination amongst the customer. In

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Target Corp. sells both items produced by other companies as well as sells items they have produced themselves. Target only sells the products they produce in their stores so they don’t have to worry about filling orders for other companies or be worried about demand from another company decrease. They are in control of their own supply and only have to worry about their own stores and the supply needed in house. While Target does produce some of their own goods, I would say their product or service is the shopping experience. Target Corp wants the consumers to choose them over all the other options there are out there that may offer similar products.

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Below is the project balance sheet for Target Corporation in 2016 (in millions). Target 2016 Assets Current Assets Cash 2,512 Net Receivables 749 Inventories 8,309 Other Current Assets 144 Total Current Assets

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During the initial years, the Target store lost money and had reported more liabilities and debt than revenue, but then reported it’s first gain in 1965 when sales reached almost $39 million. By then, they had opened up a fifth store in Minneapolis (Nolen 2014). By analyzing the equity

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One of the major problems Target has had is dealing with inventory. Target uses specific companies to meet online orders. When a company places an order online, employees from a specific store, closer to the address where it needs to be shipped, fulfills that order using inventory from that store. By doing so, shelves from that specific store are emptied causing sales to slow down due to the lack of products. Target understands that changes need to be made to correct its inventory woes and plan to keep on growing in its e-commerce business (Meola,

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Why Target Expansion in Canada Failed Scope, time, quality, and budget or cost is the main elements with which a successful project is defined and described. A project is said to have failed if it is not implemented to meet the planned parameters of scope, time, quality, and budget. There are myriad cases in which projects have failed because the project managers and project teams have failed to apply certain principles and practices of project management or have applied them incompetently. Target Expansion in Canada is an example of projects that failed because the project team did not apply certain principles of project management. Target ran a series of stores in Canada for quite a short period.

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Target Corporation uses the straight-line method for depreciating its assets. According to its financial statement, Target’s property, and equipment is depreciated using the straight-line method over estimated useful lives or lease term if shorter. The straight-line method consists of computing depreciation by dividing the difference between the asset’s cost and its estimated residual value by its useful life to get the depreciation expense.

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After working in banking and real estate, native New Yorker, George D. Dayton decides to explore Midwest markets. Dayton notices Minneapolis offers some strongest opportunities for growth and so decides to purchase land on Nicollet Avenue and forms Dayton Dry Goods Company – today known as Target Corporation (“Target through the Years”). “Target Corporation is an upscale discount retailer that provides high-quality, on-trend merchandise at attractive prices in clean, spacious and customer friendly stores” (“Corporate Fact Sheet”). Today, target operates 1,829 stores in United States, which has enabled the company to grow to the top of the retail store market. It has implemented various techniques and strategies to constantly improve and ensure the effectiveness and efficiency of all operations (“Corporate Fact Sheet”).

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Mr. Tyson went on to say they have always had this accounting system in place. Metro PCS is conducting a periodic inventory management system. According to www.Investopia.com, it is defined as “a method of inventory valuation for financial reporting purposes where a physical count of the inventory is performed at specific intervals. This accounting method takes inventory at the beginning of a period, adds new inventory purchases during the period and deducts ending inventory to derive cost of goods sold.” I think they are using the best system because of the size of each store and the amount of transactions that take place on a day-to-day basis.

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Target Corporation is one of the famous retail stores in the United States which is founded by George Dayton in 1902. Walmart is the main competitor to Target because these companies have similarities such as goods, services, business form, and customers. To compare Target to Walmart is logical because people can determine and analyze advantages and disadvantages in annual financial statement between Target and Walmart. Target and Walmart have different data on investment activities which are important to their companies. Investment activities are, uses necessary resources for operating of their companies which include computers, delivery trucks, furniture, buildings.

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Inbound Logistic Process Target is a retail store selling goods worldwide through its retail stores located at various part of the world. It purchases goods from its suppliers and ship those goods to its distribution centre and retail outlets. The continuous supply of merchandise is a tough job as the Global purchase is a difficult process to manage when; sources of supply, regional economies, and governments change in international purchasing can lead to disputes and

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Starbucks is a U.S. corporation that sells high quality roasted coffees, hand crafted coffee and teas; as well as fresh food items. They sell these through their company operated stores and other methods such as licenses stores and food service accounts (Investor Relations, n.d.). They started in 1971 with a single store in Seattle Washington and as of June 2015 they had 25,519 stores worldwide. Starbucks sells their products is the U.S., Canada, Latin America, Europe, Middle East, Africa and China/Asia Pacific. They market their products under other names such as Teavanna, Seattle’s Best Coffee and Evolution Fresh (Company Information, n.d.).

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Every business is continually working towards growing its profits. Through profit maximization, businesses can find the best price levels to achieve its profitability goals. This method allows companies to set different product at prices that return maximum revenue and profitability. Profit maximizing prices are important because they have a positive long-run effect on profit, rather than markdowns, which create excitement but inevitably have a negative long term profit effect. In order to find this equilibrium price, a company must determine its consumer’s price elasticity or price sensitivity (Chapter 14 slides).

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Q.3: By focusing on the “Pay less” part of its slogan, has Target pursued the best strategy? Why or why

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