Following are the financial statements of Target Corp.

Required

Forecast Target's fiscal year ended 2014 and 2015 income statements, balance sheets, and statements of cash flows. Round revenue growth to the nearest whole percent and round forecasts to \(\$\) millions. Assume credit card revenue growth is the same as the sales revenue growth. Use the same forecasting assumptions for both years; estimate forecasted income statement relations to 3 decimal places, for example, Other current assets/Sales is \(2.6 \%\) (assume no change for: interest expense, deferred tax liability, common stock, additional paid-in capital, and accumulated other comprehensive loss). Target's long-term debt footnote indicates maturities of \(\$ 2,001\) million in fiscal year ended 2014, \$1,001 million in fiscal year ended 2015, and maturities of \(\$ 27\) million in fiscal year ended 2016. Hint: Nonrecourse debt is interest bearing debt. The outstanding debt of \(\$ 1,500\) million is included in the current maturities of \(\$ 2,001\) million for fiscal year ended 2014 (assume no additional debt will be acquired). The remaining \(\$ 501\) is unsecured debt and other borrowings. Assume a 1.5\% rate for return on investments and a \(4.3 \%\) rate for interest bearing debt. Also assume no gain on receivables in future years. What investment or financing assumptions are required for forecasting purposes? What is our assessment of Target's financial condition over the next two years?

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(millions, except per share data) Sales.... Credit card revenues Consolidated Statements of Operations Feb. 2, 2013 $71,960 1,341 Total revenues Cost of sales.. Selling, general and administrative expenses Credit card expenses.. Depreciation and amortization.. Gain on receivables held for sale.. Earnings before interest expense and income taxes. Net interest expense...... Earnings before income taxes. Provision for income taxes.. Net earnings.... Basic earnings per share. Diluted earnings per share.. Weighted average common shares outstanding Basic. Diluted 73,301 50,568 14,914 467 2,142 (161) 5,371 762 4,609 1,610 $ 2,999 $ 4.57 $ 4.52 656.7 663.3 Jan. 28, 2012 $68,466 1,399 69,865 47,860 14,106 446 2,131 5,322 866 4,456 1,527 $ 2,929 $4.31 $ 4.28 679.1 683.9 Jan. 29, 2011 $65,786 1,604 67,390 45,725 13,469 860 2,084 - 5,252 757 4,495 1,575 $ 2,920 $ 4.03 $ 4.00 723.6 729.4