Question
Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow. Income Statement For Fiscal Years Ended ($ millions) 2006 2005 2004
Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow.
Income Statement
For Fiscal Years Ended ($ millions)
2006
2005
2004
Sales
$ 51,271
$ 45,682
$ 40,928
Credit card revenues
1,349
1,157
1,097
Total revenues
52,620
46,839
42,025
Cost of sales
34,927
31,445
28,389
Selling, general and administrative expenses
11,185
9,797
8,657
Credit card expenses
776
737
722
Depreciation and amortization
1,409
1,259
1,098
Earnings before interest and income taxes
4,323
3,601
3,159
Net interest expense
463
570
556
Earnings before income taxes
3,860
3,031
2,603
Provisions for income taxes
1,452
1,146
984
Net earnings
$ 2,408
$ 1,885
$ 1,619
Balance Sheet
($ millions, except footnotes)
January 28, 2006
January 29, 2005
Assets
Cash and cash equivalents
$ 1,648
$ 2,245
Credit card receivables
5,666
5,069
Inventory
5,838
5,384
Other current assets
1,253
1,224
Total current assets
14,405
13,922
Property and equipment
Land
4,449
3,804
Buildings and improvements
14,174
12,518
Fixtures and equipment
3,219
2,990
Computer hardware and software
2,214
1,998
Construction-in-progress
1,158
962
Accumulated depreciation
(6,176)
(5,412)
Property and equipment, net
19,038
16,860
Other noncurrent assets
1,552
1,511
Total assets
$ 34,995
$ 32,293
Liabilities and shareholders' investment
Accounts payable
$ 6,268
$ 5,779
Accrued and other current liabilities
2,567
1,937
Current portion of long-term debt and notes payable
753
504
Total current liabilities
9,588
8,220
Long-term debt
9,119
9,034
Deferred income taxes
851
973
Other noncurrent liabilities
1,232
1,037
Shareholders' investment
Common stock
73
74
Additional paid-in-capital
2,121
1,810
Retained earnings
12,013
11,148
Accumulated other comprehensive income (loss)
(2)
(3)
Total shareholders' investment
14,205
13,029
Total liabilities and shareholders' equity
$ 34,995
$ 32,293
(d) Compute net nonoperating obligations (NNO) for 2006 and 2005. 2006 NNO = ???
2005 NNO = ???
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