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Business Applications Case Understanding real world annual reports
Required:
Use the Target Corporation's annual report in Appendix B to answer the following questions.
a. For the year ended January 29, 2011 (2010), which was larger, Target's net income or its cash flow from operating activities ? By what amount did they differ?
b. What two items are most responsible for the difference between Target's net income and its cash flow from operating activities in 2010?
c. In 2010 Target generated approximately $5.3 billion of cash from operating activities, and its cash balance decreased by about $0.5 billion. How did the company use this $5.8 billion of cash?
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
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A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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