Business, 16.04.2020 01:44 krystlelong29

Target Corporation prepares its financial statements according to U. S. GAAP. Target's financial statements and disclosure notes for the year ended January 30, 2016, are available Connect. This material also is available under the Investor Relations link at the company's website (www. target. com). Target does not have investments in stock or bonds. However, CVS Health Corp., which purchased Target's pharmacy and clinical business during 2015, does have some investments. Access CVS's 2015 10K (issued on February 9, 2016) at investors. cvshealth. com to answer the following questions,

Required:

1. CVS indicates in Note 1 that it has some short-term investments that consist of certificates of deposit (CDs).

a. How has CVS classified those CDs for accounting purposes?

b. Per CVS's balance sheet, what was the balance in CVS's short-term investments as of December 31, 2015 and December 31, 2014?

c. Per CVS's statement of cash flows, what cash transactions affected short-term investments during 2015?

d. Prepare a T-account that summarizes transactions affecting CVS's short-term investments during 2015. Speculate as to the explanation for any "plug" figure necessary to make the T-account balance.

2. Per Note 1, CVS has equity-method investments in SureScripts, LLC and in Heartland Healthcare Services. CVS indicates that those investments are immaterial for the year ended December 31, 2015. Assuming that the Heartland investment is material,

a. How would Heartland's earnings affect CVS's income statement?

b. How would Heartland's earnings affect CVS's balance sheet?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 16:50

Which of the following is the most important role of marketing in the process selection decision? identifying points of differentiation for mass customization. stimulating demand in developing markets. estimating and managing future demand. providing translation of the voice of the customer.

Answers: 2

Answer

Business, 22.06.2019 11:50

The following are the current month's balances for abc financial services, inc. before preparing the trial balance. accounts payable $ 10,000 revenue 6,000 cash 3,000 expenses 17,500 furniture 10,000 accounts receivable 14,000 common stock ? notes payable 6,500 what amount should be shown for common stock on the trial balance? a. $48.000b. $12.500c. $27.000d. $28.000

Answers: 3

Answer

Business, 22.06.2019 13:40

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)

Answers: 1

Answer

Business, 22.06.2019 14:50

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

Answers: 3

Answer

You know the right answer?

Target Corporation prepares its financial statements according to U. S. GAAP. Target's financial sta...

Questions