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Cant figure out how to get depreciation and amortization ? Two-Year-Ahead Forecasting of Financial Statement Following are the financial statements of Target Corporation from its

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedCant figure out how to get depreciation and amortization ?

Two-Year-Ahead Forecasting of Financial Statement Following are the financial statements of Target Corporation from its FY2015 annual report. Target Corporation Consolidated Statements of Operations 12 Months Ended $millions Jan. 30, 2016 Jan. 31, 2015 Feb. 01, 2014 Sales 74,785 72,618 71,279 Cost of sales 52,723 51,278 50,039 Gross margin 22,062 21,340 21,240 Selling, general and administrative expenses 14,882 14,676 14,465 Depreciation and amortization 2,213 2,129 1,996 Gain on sale (620) (319) Earnings from continuing operations before interest expense & income taxes 5,587 4,535 5,170 Net interest expense 607 882 1,049 Earnings from continuing operations before income taxes 4,980 3,653 4,121 Provision for income taxes 1,619 1,204 1,427 Net earnings from continuing operations 3,361 2,449 2,694 Discontinued operations, net of tax (4,085) (723) Net earnings (loss) 3,403 (1,636) 1,971 42 Assets Cash and cash equivalents, inc. short-term investments of $3,008 and $1,520 $2,210 $4,046 8,601 322 8,282 Inventory Assets of discontinued operations Other current assets Total current assets Property and equipment, net Noncurrent assets of discontinued operations Other noncurrent assets 1,161 14,130 25,417 1,058 2,074 13,624 25,952 717 75 840 $40,462 879 $41,172 $7,418 $7,759 4,236 3,783 815 91 153 103 11,736 Total assets Liabilities and Shareholders' investment Accounts payable Accrued expenses and other current liabilities Current portion of LT debt and other borrowings Liabilities of discontinued operations Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent liabilities of discontinued operations Other noncurrent liabilities Total noncurrent liabilities Shareholders' investment Common stock Additional paid-in-capital Retained earnings Accumulated other comprehensive loss Pension and other benefit liabilities Currency translation adjustment and cash flow hedges Total shareholders' investment Total liabilities and shareholders' investment 12,622 11,945 823 18 1,897 12,634 1,160 193 1,452 14,683 15,439 50 5,348 8,388 53 4,899 9,644 (588) (41) 13,157 $40,462 (561) (38) 13,997 $41,172 We forecast Target's income statement using the following forecast assumptions for both years: 4% Sales (growth rate) Cost of sales/Sales 70.5% Selling, general and administrative expenses/Sales 19.9% Depreciation and amortization (% of prior year PPE, net) 8.4% Net interest expense No change Provisions for income taxes/Pretax income 32.5% Assume Target disposes of the net assets from discontinued operations (assets less liabilities)in FY2016 for proceeds of $350 million. Instructions: Forecast Target's fiscal year ended 2016 and 2017 income statements. Use the same forecasting assumptions for both years, Round forecasts to $ millions. Use rounded figures for subsequent forecast calculations. Do not use negative signs with your answers in the income statement. Hint: Forecasted FY2016 gain on sale is computed as proceeds from the disposal of net assets from discontinued operations minus net assets from discontinued operations ($350 million - $226 million). Forecast $0 for gain on sale in FY2017. Target Corporation Consolidated Statements of Operations $ millions FY2016 Est. Sales 77,776 Cost of sales 54,832 Gross margin 22,944 Selling, general and administrative expenses 15,477 v Depreciation and amortization 2,135 Gain on sale 124 Earnings from continuing operations before interest and tax 5,456 Net interest expense 607 ~ Earnings from continuing operations before tax 4,849 Provisions for income taxes 1,576 Net earnings 3,273 FY2017 Est. $ 80,887 57,025 23,862 16,097 1,956 x 0 5,636 x 607 OX 1,639 X $ 3,404 x

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