Analysis and Interpretation of Profitability

Balance sheets and income statements for Target Corporation follow

Income Statement For Fiscal Years Ended ($ millions) 2008 2007 2006 Sales $ 61,471 $ 57,878 $ 51,271 Credit card revenues 1,896 1,612 1,349 Total revenues 63,367 59,490 52,620 Cost of sales 41,895 39,399 34,927 Selling, general and administrative expenses 13,704 12,819 11,185 Credit card expenses 337 707 776 Depreciation and amortization 1,659 1,496 1,409 Earnings before interest and income taxes 5,272 5,069 4,323 Net interest expense 647 572 463 Earnings before income taxes 4,625 4,497 3,860 Provisions for income taxes 1,776 1,710 1,452 Net earnings $ 2,849 $ 2,787 $ 2,408 Balance Sheet ($ millions, except footnotes) February 2, 2008 February 3, 2007 Assets Cash and cash equivalents $ 2,450 $ 813 Credit card receivables 8,054 6, 194 Inventory 6,780 6,254 Other current assets 1,622 1,445 Total current assets 18,906 14,706 Property and equipment Land 5,522 4,934 Buildings and improvements 18,329 16, 1 10 Fixtures and equipment 3,858 3,553 Computer hardware and software 2,421 2, 188 Construction-in-progress 1,852 1,596 Accumulated depreciation (7,887) (6,950) Property and equipment, net 24,095 21,431 Other noncurrent assets 1,559 1,212 Total assets $ 44,560 $ 37,349 Liabilities and shareholders' investment Accounts payable $ 6,721 $ 6,575Balance Sheet ($ millions, except footnotes) February 2, 2008 February 3, 2007 Cash and cash equivalents Credit card receivables Other current assets Total current assets Property and equipment Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment, net Other noncurrent assets Liabilities and shareholders' investment Accounts payable Accrued and other current liabilities Current portion of long-term debt and notes payable Total current liabilities Deferred income taxes Other noncurrent liabilities Shareholders' investment Additional paid-in-capital Retained earnings Accumulated other comprehensive income (loss) Total shareholders' investment Total liabilities and shareholders' equity