A7. Note 13 provides information on Target's current assets. Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the $14,248 million of selling, general, and administrative expenses reported in the income statement for the year ended February 3, 2018. How much cash did Target pay for insurance coverage during the year? Prepare the adjusting entry Target would make to record all insurance expense for the year. What would be the effect on the income statement and balance sheet if Target didn't record an adjusting entry for prepaid expenses? A8. By what name does Target label its balance sheet? 2013 2014 2017 2016 2015 FINANCIAL RESULTS: (in millions) $ 72,618 $ 71279 $ 71879 51125 $ 73,785 52,241 $ 69,495 Sales 51,506 50,243 49,145 Cost of sales N 21112 21,036 21544 20,754 20,350 Gross margin Seling general and administrative expenses (SG&A) Depreciation and amortization (exclusive of depreciation included on cost of sales) 14,676 14,465 14,665 14.248 13,356 1,901 1,792 1,969 2,025 2.194 (391) (620) Gain on sale e Eamings from continuing operations before interest expense and income taxes (EBIT) 5,530 607 4,535 5,170 4,969 4,312 1,049 882 666 1,004 Net interest expense 3,646 3,653 4,121 Eamings from continuing operations before income taxes Provision for income taves 3,965 4,923 1,602 1,204 1427 718 1296 2,669 2,449 2,694 3,321 Net earnings from continuing operations Discontinued operations, net of tax 2,928 (4,085) (1636) (723) 42 68 Net earnings / (loss) 2,934 2,737 3,363 PER SHARE: Basic eamings / (loss) per share Continuing operations Discontinued operations 5.35 4.62 5.29 3.86 $4.24 001 012 007 (6.44) (2 58) (114) Net eamings / (loss) per share Diluted eamings / (loss) per share Continuing operalions Discontinued operations 5.36 4.74 5.35 310 5.32 4.58 5.25 3.83 4.20 0.01 012 0.07 (6.38) (113) Net earrings / (loss) per share 5.33 4.70 531 (2.56) 3.07 Cash dividends decdared 2.20 246 2.36 199 1.65 FINANCIAL POSITION (in millions) Total ansets S 38,999 $ 40,262 37431 41.172 $ 44,325 Capital expenditures 2,533 1547 1438 1,786 1886 Long term debt, incuding current portion 11,587 12.749 12,760 S 12,725 12 494 Net debt we S 10,456 11639 9.752 11.205 12,491 Shareholders investment SEGMENT FINANCIAL RATIOS 11.709 10.953 $ 12.957 13,997 16,231 Comparable sales growth Gross margin (% of sales) SGAA (% of sales) EBIT margin (% of sales) 13% (05 y% 21% 13% (0.4)% 28.9% 29.3 % 29 2% 291% 29 5% 19.8% 192% 196% 200% 20.2% 6.0% 71 % 6.9% 6.5% 6.8% OTHER Common shares outstanding (in millions) Operating cash flow provided by continuing operations (in milions) Sales per square foot Retail square feet (in thousands) Square footage growth 541.7 556 2 602.2 640.2 6329 6,849 5,329 5,254 5,157 7572 295 290 307 302 298 239.355 239,502 239,539 239.963 240,054 (0.1)% (0.2Y% 09% EHel. 2017-Annual-Repor. Inter Acc 1 FINAL -. %24 %24