Question 1 Partially correct Mark 52.00 out of 70.00 Flag question Two-Year-Ahead Forecasting of Financial Statement Following are the financial statements of Target Corporation from its fiscal year ended February 2, 2019. Target Corporation Consolidated Statements of Financial Position For Fiscal Years Ended ($ millions) Feb. 2, 2019 Feb. 3, 2018 Assets Cash and cash equivalents $1,556 $2,643 Inventory 9,497 8,597 Other current assets 1,466 1,300 Total current assets 12,519 12,540 Property and equipment Land 6,064 6,095 Buildings and improvements 29,240 28,131 Fixtures and equipment 5,912 5,623 Computer hardware and software 2,544 2,645 Construction-in-progress 460 440 Accumulated depreciation (18,687) (18,398) Property and equipment, net 25,533 24,536 Operating lease assets 1,965 1,884 Other noncurrent assets 1,273 1,343 Total assets $41,290 $40,303 Liabilities and Shareholders' investment Accounts payable $9,761 $8,677 Accrued and other current liabilities 4,201 4,094 Current portion of long-term debt and other borrowings 1,052 281 Total current liabilities 15,014 13,052 Long-term debt and other borrowings 10,223 11,117 Noncurrent operating lease liabilities 2,004 1,924 Deferred income taxes 972 693 Other noncurrent liabilities 1,780 ,866 Total noncurrent liabilities 14,979 15,600 Shareholders' investment Common stock 43 45 Additional paid-in-capital 6,042 5,858 Retained earnings 6,017 6,495 Accumulated other comprehensive loss (805 (747) Total shareholders' investment 11,297 11,651 Total liabilities and shareholders' investment $41,290 $40,303Target Corporation Consolidated Statements of Operations 12 Months Ended ($ millions) Feb. 2, 2019 Feb. 3, 2018 Jan. 28, 2017 Total revenue $75,356 $72,714 $70,271 Cost of sales 53,299 51,125 49,145 Selling, general and administrative expenses 15,723 15,140 14,217 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,224 2,225 2,045 Operating income 4,1 10 4,224 4,864 Net interest expense 461 653 991 Net other (income) expense (27) (59) (88) Earnings from continuing operations before income taxes 3,676 3,630 3,961 Provision for income taxes 746 722 1,295 Net earnings from continuing operations 2,930 2,908 2,666 Discontinued operations, net of tax 7 6 68 Net earnings $ 2,937 $ 2,914 $ 2,734Forecast Target's income statements for the fiscal years ended February 2020 and 2021 using the following assumptions and data Assumptions ($ millions) Revenue growth 3.6% Cost of sales as % of Total revenue 70.7% Selling, general and administrative expenses as % of Total revenue 20.9% Forecasted depreciation expense for year ended February 2020 $2,565 Forecasted depreciation expense for year ended February 2021 $2,778 Amortization expense $0 Net interest expense No change Net other (income) expense No change Discontinued operations, net of tax $0 Tax rate (as % pretax income) 20% Instructions: Round answers to the nearest whole number. Do not use negative signs with any of your answers. Target Corporation Consolidated Statements of Operations 12 Months Ended ($ millions) Feb. 2020 Feb. 2021 Total revenue $ 78,069 - $ 80,879 Cost of sales 55, 195 57,181 Selling, general and administrative expenses 16,316 16,904 Depreciation and amortization (exclusive of depreciation included in cost of sales) 2,565 2,778 Operating income 3,993 4,016 Net interest expense 461 461 Net income income 27 V 27 Earnings from continuing operations before income taxes 3,559 3,582 V Provision for income taxes 712 716 Net earnings from continuing operations 2,847 6,828 x Discontinued operations, net of tax OV 0 Net earnings 2,847 ~ $ 6,828 x Forecast Target's balance sheets for the fiscal years ended February 2020 and 2021. Combine the forecasted property and equipment accounts into one account, titled Property and equipment, net. Use the following assumptions and data. Assumptions ($ millions) Inventory as % Total revenue 12.6% Other current assets as % Total revenue 1.9% Operating lease assets as % Total revenue 2.6% Other noncurrent assets as % Total revenue 1.7% Accounts payable as % Total revenue 13.0% Accrued and other current liabilities as % Total revenue 5.6% Noncurrent operating lease liabilities No change Deferred income taxes as % Total revenue 1.3% Other noncurrent liabilities as % Total revenue 2.4% Common stock No change Additional paid-in capital No change Accumulated other comprehensive loss No change CAPEX/Current period total revenue 4.70% Dividends for year ended February 2019 $1,335 Dividend payout 45.5% Stock buybacks per year $0 Long term debt, current portion at February 2019 $1,052 Long term debt, current portion at February 2020 $1,002 Long-term debt, current portion at February 2021 $1,094Instructions: Round answers to the nearest whole number. Use a negative sign with your Accumulated other comprehensive loss answers. Target Corporation Consolidated Statements of Financial Position For Fiscal Years Ended ($ millions) Feb. 2020 Feb. 2021 Assets Cash and cash equivalents $ 3,256 x $ 5,048 x Inventory 9,837 10,191 Other current assets 1,483 1,537 Total current assets 12,519 x 11,727 x Property and equipment 26,637 26,637 x Operating lease assets 2,030 2,103 Other noncurrent assets 1,327 1,375 Total assets $ 42,495 x $ 41,843 x Liabilities and Shareholders' investment Accounts payable 1$ 10,149 - $ 10,514 Accrued and other current liabilities 4,372 V 4,529 Current portion of long-term debt and other borrowings 1,002 1,094 Total current liabilities 15,523 V 16,138 x Long-term debt and other borrowings 9,231 x 8,137 x Noncurrent operating lease liabilities 2,004 2,004 Deferred income taxes 1,015 1,051 Other noncurrent liabilities 1,874 1,941 Total noncurrent liabilities 14,124 x 13,134 x Shareholders' investment Common stock 43 v 43 V Additional paid-in-capital 6,042 6,042 Retained earnings 7,569 9,130 x Accumulated other comprehensive loss (805) (805) Total shareholders' investment 12,849 14,410 x Total liabilities and shareholders' investment $ 44,570 * $ 43,681 x Check