Section 4. Budgeting Analysis
- Compare actual amounts from last year to the budget you have created for sales. Give an analysis on if Target exceeded budgeted sales. If so, explain the contributing factors for this. If sales did not exceed what was budgeted, explain the contributing factors.
- Compare actual amounts from last year to the budget you have created for expenses. Give an analysis on if Target exceeded budgeted expenses. If so, explain the contributing factors for this. If expenses did not exceed what was budgeted, explain the contributing factors.
Budgeting Target Corporation INSTRUCTIONS: Select the previous three years annual reports to complete the cells below. Change XX to the yea of the report you are analyzing. FY 2016 % change 2013-2014 FY 2017 72,714 $ % change 2014-20 FY 2015 73,785$ FY 2013 71,279 FY 2014 72,618$ 69,495$ 2%) Sales Relevant expenses: Cost of sales Selling, general, and administrative expense Depreciation and amortization Total relevant expenses 51,125$ 15,140 $ 2,225$ 68,490 $ 48,872 $ 13,356 $ 2,298$ 64,526 $ 51,997 $ 51,278 $ 50,039 14,665 $ 14,676 $ 14,465 2,213 $ 2,129 $ 1,996 68,875 $ 68,083 $ 66,500 Budgeted and actual income statement accounts FY 2018-2019 2% 1% 7% 2% Difference Actual 2018 75,356 Average % change 2013-2017 0.58% $ Budget 2019 75,790$ Actual 2019 78,112$ % difference from budgeted amount 3.06% 2,322 -0.62% Sales Relevant expenses: Cost of sales Selling, general, and adminstrative expense Depreciation and amortization Total relevant expenses 53,299 15,723 2,224 71,246 0.62% $ 1.45% 2.82% 0.84% $ 53,629 15,952$ 2,287 $ 71,847 $ 53,299 $ 15,723 $ 2,224 $ 71,246 (330) (229) (63) (601) -1.43% -2.74% -0.84% $ tion ells below. Change XX to the yea of the report you are analyzing. % change 2013-2014 % change 2014-2015 2% % change 2015-2016 -6% % change 2016-2017 Average % change 2013-2017 0.58% 2% 5% -6% -9% 2% 1% 7% 2% 1% 0% 4%) 1% 5% 13% -3% 6% 0.62% 1.45% 2.82% 0.84% 4% -6% accounts FY 2018-2019 % difference from budgeted amount 3.06% -0.62% -1.43% -2.74% -0.84% 2017 As Adjusted 2019 2018 2016 As Adjusted 2015 As Ajusted $ $ $ $ 71,786 928 77,130 982 78,112 54,864 16,233 74433 923 75,356 53,299 15,723 72,714 51,125 15340 69,414 857 70.271 49,145 14,217 $ 73,777 777 74494 52,241 15406 2357 4658 477 (9) 4,190 921 3,269 2,224 4110 461 (27) 3.676 2,225 4224 653 (59) 3.630 722 2908 2,045 4864 991 (88) 3,961 1.296 2,686 68 2,734 1969 4878 607 (652) 4923 1,602 3,321 746 2930 7 6 $ 3,281 $ 2,937 $ 2914 $ $ 3,363 $ $ S $ $ 6.39 0.02 6.42 554 0.01 5.55 532 0.01 532 4.61 0.12 4.73 5.29 0.07 535 $ $ $ $ $ $ 6.34 $ FINANCIAL RESULTS n millions) Sales Other revenue Total revenue Cost of Sales Seling, general and administrative expenses (SG&A) Depreciation and amortization (exclusive of depreciation included in cost of sales) Operating income Net interest expense Net other income) /expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings PER SHARE Basic earnings per share Continuing operations Discontinued operations Net earnings per share Diluted earnings per share Continuing operations Discontinued operations Net earnings per share Cash dividends declared FINANCIAL POSITION (in millions) Total assets Capital expenditures Long-term debt, including current portion Net debt Shareholders' investment FINANCIAL RATIOS Comparable sales growth Gross margin (% of sales) SG&A expenses (% of total revenue) Operating income margin (% of total revenue) OTHER Common shares outstanding in milions) Operating cash flow provided by continuing operations in millions) Revenue per square foot Retail square feet lin thousands) Square footage growth Total number of stores Total number of distribution centers $ $ $ 5.50 0.01 529 0.01 4.58 0.12 5.25 0.07 0.02 $ $ 5.51 $ 5:31 6.36 2.62 $ $ 529 246 $ $ $ $ 254 $ 2.36 220 $ $ $ $ $ 42779 3.027 11499 $ $ $ $ $ 41290 3,516 11275 10,506 11.297 $ 40303 $ 2,533 $ 11,398 $ 10,267 $ 11,651 $ 38,724 $ 1547 $ 12,591 $ 11481 $ 10,915 $ 40,262 $ 1438 $ 12,760 $ $ 12,957 9752 9689 11,833 13% 2.1% 3.4% 28.9% 20.8% 6.0% 50% 28.4% 209% 5.5% 28.8% 20.8% 58% (0.5)% 29.2% 20.2% 6.9% 291% 20.7% 6.5% 5042 5178 541.7 5562 6022 $ S $ $ $ 6,861 298 $ 7,099 326 240,516 04% 1868 5,970 314 239,581 0.1% 5,337 $ 293 239,502 239,355 (0.1% 1822 41 $ 5,254 $ 310 239,539 (0.21% 1792 40 2 1844 40 1802 40 Budgeting Target Corporation INSTRUCTIONS: Select the previous three years annual reports to complete the cells below. Change XX to the yea of the report you are analyzing. FY 2016 % change 2013-2014 FY 2017 72,714 $ % change 2014-20 FY 2015 73,785$ FY 2013 71,279 FY 2014 72,618$ 69,495$ 2%) Sales Relevant expenses: Cost of sales Selling, general, and administrative expense Depreciation and amortization Total relevant expenses 51,125$ 15,140 $ 2,225$ 68,490 $ 48,872 $ 13,356 $ 2,298$ 64,526 $ 51,997 $ 51,278 $ 50,039 14,665 $ 14,676 $ 14,465 2,213 $ 2,129 $ 1,996 68,875 $ 68,083 $ 66,500 Budgeted and actual income statement accounts FY 2018-2019 2% 1% 7% 2% Difference Actual 2018 75,356 Average % change 2013-2017 0.58% $ Budget 2019 75,790$ Actual 2019 78,112$ % difference from budgeted amount 3.06% 2,322 -0.62% Sales Relevant expenses: Cost of sales Selling, general, and adminstrative expense Depreciation and amortization Total relevant expenses 53,299 15,723 2,224 71,246 0.62% $ 1.45% 2.82% 0.84% $ 53,629 15,952$ 2,287 $ 71,847 $ 53,299 $ 15,723 $ 2,224 $ 71,246 (330) (229) (63) (601) -1.43% -2.74% -0.84% $ tion ells below. Change XX to the yea of the report you are analyzing. % change 2013-2014 % change 2014-2015 2% % change 2015-2016 -6% % change 2016-2017 Average % change 2013-2017 0.58% 2% 5% -6% -9% 2% 1% 7% 2% 1% 0% 4%) 1% 5% 13% -3% 6% 0.62% 1.45% 2.82% 0.84% 4% -6% accounts FY 2018-2019 % difference from budgeted amount 3.06% -0.62% -1.43% -2.74% -0.84% 2017 As Adjusted 2019 2018 2016 As Adjusted 2015 As Ajusted $ $ $ $ 71,786 928 77,130 982 78,112 54,864 16,233 74433 923 75,356 53,299 15,723 72,714 51,125 15340 69,414 857 70.271 49,145 14,217 $ 73,777 777 74494 52,241 15406 2357 4658 477 (9) 4,190 921 3,269 2,224 4110 461 (27) 3.676 2,225 4224 653 (59) 3.630 722 2908 2,045 4864 991 (88) 3,961 1.296 2,686 68 2,734 1969 4878 607 (652) 4923 1,602 3,321 746 2930 7 6 $ 3,281 $ 2,937 $ 2914 $ $ 3,363 $ $ S $ $ 6.39 0.02 6.42 554 0.01 5.55 532 0.01 532 4.61 0.12 4.73 5.29 0.07 535 $ $ $ $ $ $ 6.34 $ FINANCIAL RESULTS n millions) Sales Other revenue Total revenue Cost of Sales Seling, general and administrative expenses (SG&A) Depreciation and amortization (exclusive of depreciation included in cost of sales) Operating income Net interest expense Net other income) /expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings PER SHARE Basic earnings per share Continuing operations Discontinued operations Net earnings per share Diluted earnings per share Continuing operations Discontinued operations Net earnings per share Cash dividends declared FINANCIAL POSITION (in millions) Total assets Capital expenditures Long-term debt, including current portion Net debt Shareholders' investment FINANCIAL RATIOS Comparable sales growth Gross margin (% of sales) SG&A expenses (% of total revenue) Operating income margin (% of total revenue) OTHER Common shares outstanding in milions) Operating cash flow provided by continuing operations in millions) Revenue per square foot Retail square feet lin thousands) Square footage growth Total number of stores Total number of distribution centers $ $ $ 5.50 0.01 529 0.01 4.58 0.12 5.25 0.07 0.02 $ $ 5.51 $ 5:31 6.36 2.62 $ $ 529 246 $ $ $ $ 254 $ 2.36 220 $ $ $ $ $ 42779 3.027 11499 $ $ $ $ $ 41290 3,516 11275 10,506 11.297 $ 40303 $ 2,533 $ 11,398 $ 10,267 $ 11,651 $ 38,724 $ 1547 $ 12,591 $ 11481 $ 10,915 $ 40,262 $ 1438 $ 12,760 $ $ 12,957 9752 9689 11,833 13% 2.1% 3.4% 28.9% 20.8% 6.0% 50% 28.4% 209% 5.5% 28.8% 20.8% 58% (0.5)% 29.2% 20.2% 6.9% 291% 20.7% 6.5% 5042 5178 541.7 5562 6022 $ S $ $ $ 6,861 298 $ 7,099 326 240,516 04% 1868 5,970 314 239,581 0.1% 5,337 $ 293 239,502 239,355 (0.1% 1822 41 $ 5,254 $ 310 239,539 (0.21% 1792 40 2 1844 40 1802 40
