PART I:

1. Using the template provided, how can a common-size Consolidated Statements of Financial Position be prepared?;
2. Using the template provided, how can a common-size Consolidated Statements of Operations be prepared?;

	TARGET CORPORATION
	CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
	[COMMON SIZE FINANCIAL STATEMENT: $ in Millions]
				2007	2006
	ASSETS
	Current Assets:
		Cash and cash equivalents		5.5%	2.2%
		Short-term investments		0.0%	0.0%
		Total cash and short-term investments		5.5%	2.2%
		Accounts receivable, net		18.1%	16.6%
		Inventories, net		15.2%	16.7%
		Current deferred taxes		1.2%	1.1%
		Other current assets		2.4%	2.7%
		Total current assets		42.4%	39.4%
		Property, plant, and equipment		71.8%	76.0%
		Less: accumulated depreciation		-17.7%	-18.6%
		Net property, plant, and equipment		54.1%	57.4%
		Long-term investments		0.0%	0.0%
		Goodwill, net		0.1%	0.2%
		Other intangibles, net		0.3%	0.4%
		Other deferred taxes		0.0%	0.0%
		Other assets		3.0%	2.7%
		Total assets		100.0%	100.0%
	LIABILITIES
	Current Liabilities:
		Accounts payable		15.1%	17.6%
		Short-term debt		0.0%	0.0%
		Current portion of long-term debt		4.4%	3.6%
		Accrued liabilities		7.0%	8.5%
		Income taxes payable		0.0%	0.0%
		Other current liabilities		0.0%	0.0%
		Total current liabilities		26.4%	29.8%
		Long-term debt		33.9%	23.2%
		Deferred income taxes payable		1.1%	1.5%
		Other deferred liabilities		0.0%	0.0%
		Other liabilities		4.2%	3.6%
		Total liabilities		65.6%	58.1%
		Minority interest		0.0%	0.0%
	STOCKHOLDERS' EQUITY
		Preferred stock		0.0%	0.0%
		Common stock, par value plus additional paid-in capital		6.1%	6.6%
		Retained earnings (accumulated deficit)		28.6%	35.9%
		Treasury stock		0.0%	0.0%
		Accumulated other comprehensive income (loss)		-0.4%	-0.7%
		Other stockholders' equity		0.0%	0.0%
		Total stockholders' equity		34.4%	41.9%
		Total liabilities and stockholders' equity		100.0%	100.0%

TARGET CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
[ACTUAL CASE DATA: $ in Millions]
			2007	2006
ASSETS
Current Assets:
	Cash and cash equivalents		2,450	813
	Short-term investments		-	-
	Total cash and short-term investments		2,450	813
	Accounts receivable, net		8,054	6,194
	Inventories, net		6,780	6,254
	Current deferred taxes		556	427
	Other current assets		1,066	1,018
	Total current assets		18,906	14,706
	Property, plant, and equipment		31,982	28,381
	Less: accumulated depreciation		(7,887)	(6,950)
	Net property, plant, and equipment		24,095	21,431
	Long-term investments		-	-
	Goodwill, net		60	60
	Other intangibles, net		148	152
	Other deferred taxes		-	-
	Other assets		1,351	1,000
	Total assets		44,560	37,349
LIABILITIES
Current Liabilities:
	Accounts payable		6,721	6,575
	Short-term debt		-	-
	Current portion of long-term debt		1,964	1,362
	Accrued liabilities		3,097	3,180
	Income taxes payable		-	-
	Other current liabilities		-	-
	Total current liabilities		11,782	11,117
	Long-term debt		15,126	8,675
	Deferred income taxes payable		470	577
	Other deferred liabilities		-	-
	Other liabilities		1,875	1,347
	Total liabilities		29,253	21,716
	Minority interest		-	-
STOCKHOLDERS' EQUITY
	Preferred stock		-	-
	Common stock, par value plus additional paid-in capital		2,724	2,459
	Retained earnings (accumulated deficit)		12,761	13,417
	Treasury stock		-	-
	Accumulated other comprehensive income (loss)		(178)	(243)
	Other stockholders' equity		-	-
	Total stockholders' equity		15,307	15,633
	Total liabilities and stockholders' equity		44,560	37,349

		2007	2006	2005
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		837	707	776
Depreciation and Amortization		1,659	1,496	1,409
Earnings Before Interest Expense 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
Provision for Income Taxes		1,776	1,710	1,452
Net Earnings		2,849	2,787	2,408
Basic Earnings Per Share		3.37	3.23	2.73
Diluted Earnings Per Share		3.35	3.21	2.71
Weighted average common shares outstanding:
Basic		845.4	861.9	882
Diluted		850.8	868.6	889.2
End of year stock price		57.05	62.03	54.17
Dividends per share		0.54	0.46	0.38

		2007	2006	2005
Sales		97.0%	97.3%	97.4%
Credit Card Revenues		3.0%	2.7%	2.6%
Total Revenues		100.0%	100.0%	100.0%
Cost of Sales		66.1%	66.2%	66.4%
Selling, General and Administrative Expenses		21.6%	21.5%	21.3%
Credit Card Expenses		1.3%	1.2%	1.5%
Depreciation and Amortization		2.6%	2.5%	2.7%
Earnings Before Interest Expense and Income Taxes		8.3%	8.5%	8.2%
Net Interest Expense		1.0%	1.0%	0.9%
Earnings Before Income Taxes		7.3%	7.6%	7.3%
Provision for Income Taxes		2.8%	2.9%	2.8%
Net Earnings		4.5%	4.7%	4.6%
Basic Earnings Per Share		14.82	0.00	0.00
Diluted Earnings Per Share		0.00	0.00	0.00
Weighted average common shares outstanding:
Basic		845.4	861.9	882
Diluted		850.8	868.6	889.2
End of year stock price		57.05	62.03	54.17
Dividends per share		0.54	0.46	0.38

TARGET CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
[ACTUAL CASE DATA: $ in Millions]
		2007	2006	2005
Operating Activities
Net Earnings	2,849	2,787	2,408
Reconciliation to Cash Flow
	Depreciation and amortization	1,659	1,496	1,409
	Share-based compensation expense	73	99	93
	Deferred income taxes	(70)	(201)	(122)
	Bad debt provision	481	380	466
	Loss on disposal of property and equipment, net	28	53	70
	Other non-cash items affecting earnings	52	(35)	(50)
Changes in operating accounts related to cash:
	Accounts receivable originated at Target	(602)	(226)	(244)
	Inventory	(525)	(431)	(454)
	Other current assets	(139)	(30)	(28)
	Other noncurrent assets	101	5	(24)
	Accounts payable	111	435	489
	Accrued and other current liabilities	62	430	421
	Other noncurrent liabilities	124	100	2
	Other	(79)	-	15
Cash flow provided by operations	4,125	4,862	4,451
Investing Activities
	Expenditures for property, plant and equipment	(4,369)	(3,928)	(3,388)
	Proceeds from disposal of property and equipment	95	62	58
	Change in accounts receivable originated at third parties	(1,739)	(683)	(819)
	Other investements	(182)	(144)	-
Cash flow required for investing activities	(6,195)	(4,693)	(4,149)
Financing Activities
	Additions to short-term notes payable	1,000	-	-
	Reductions of short-term notes payable	(500)	-	-
	Additions to long-term debt	7,617	1,256	913
	Reductions of long-term debt	(1,326)	(1,155)	(527)
	Dividends paid	(442)	(380)	(318)
	Repurchase of stock	(2,477)	(901)	(1,197)
	Premiums on call options	(331)	-	-
	Stock option exercises and related tax benefit	210	181	231
	Other	(44)	(5)	(1)
Cash flow provided/(required for) financing activities	3,707	(1,004)	(899)
Net increase/(decrease) in cash and cash equivalents	1,637	(835)	(597)
Cash and cash equivalents at beginning of year	813	1,648	2,245
Cash and cash equivalents at end of year	2,450	813	1,648