Target Corporation

For all business transactions, refer to the financial statements

Income Statement (Values in 000s)

Period Ending	2/3/18	1/28/17
Total Revenue	$71,879,000	$69,495,000
Cost of Revenue	$51,125,000	$49,145,000
Gross Profit	$20,754,000	$20,350,000
Operating Expenses
Research and Development	$0	$0
Sales, General and Admin.	$14,248,000	$13,356,000
Non-Recurring Items	$0	$0
Other Operating Items	$2,194,000	$2,025,000
Operating Income	$4,312,000	$4,969,000
Add'l income/expense items	$0	$0
Earnings Before Interest and Tax	$4,312,000	$4,969,000
Interest Expense	$666,000	$1,004,000
Earnings Before Tax	$3,646,000	$3,965,000
Income Tax	$718,000	$1,296,000
Minority Interest	$0	$0
Equity Earnings/Loss Unconsolidated Subsidiary	$0	$0
Net Income-Cont. Operations	$2,928,000	$2,669,000
Net Income	$2,934,000	$2,737,000
Net Income Applicable to Common Shareholders	$2,934,000	$2,737,000

Balance Sheet (Values in 000s)

Period Ending	2/3/18	1/28/17
Current Assets
Cash and Cash Equivalents	$2,643,000	$2,512,000
Short-Term Investments	$0	$0
Net Receivables	$0
Inventory	$8,657,000	$8,309,000
Other Current Assets	$1,264,000	$1,169,000
Total Current Assets	$12,564,000	$11,990,000
Long-term Assets
Long-Term Investments	$0	$0
Fixed Assets	$25,018,000	$24,658,000
Goodwill	$0	$0
Intangible Assets	$0	$0
Other Assets	$1,417,000	$783,000
Deferred Asset Charges	$0	$0
Total Assets	$38,999,000	$37,431,000
Current Liabilities
Accounts Payable	$12,931,000	$10,989,000
Short-Term Debt / Current Portion of Long-Term Debt	$270,000	$1,718,000
Other Current Liabilities	$0	$0
Total Current Liabilities	$13,201,000	$12,707,000
Long-Term Debt	$11,317,000	$11,031,000
Other Liabilities	$2,059,000	$1,879,000
Deferred Liability Charges	$713,000	$861,000
Misc. Stocks	$0	$0
Minority Interest	$0	$0
Total Liabilities	$27,290,000	$26,478,000
Stock Holders Equity
Common Stocks	$45,000	$46,000
Capital Surplus	$5,858,000	$5,661,000
Retained Earnings	$6,553,000	$5,884,000
Treasury Stock	$0	$0
Other Equity	($747,000)	($638,000)
Total Equity	$11,709,000	$10,953,000
Total Liabilities & Equity	$38,999,000	$37,431,000

Cash Flow Statement (Values in 000s)

Period Ending	2/3/18	1/28/17
Net Income	$2,934,000	$2,737,000
Cash-Flows Operating Activities
Depreciation	$2,445,000	$2,298,000
Net Income Adjustments	$229,000	$487,000
Changes in Operating Activities
Accounts Receivable	$0	$0
Changes in Inventories	($348,000)	$293,000
Other Operating Activities	($168,000)	$30,000
Liabilities	$1,757,000	($516,000)
Net Cash Flow-Operating	$6,923,000	$5,436,000
Cash-Flows Investing Activities

Cash-Flows Investing Activities
Capital Expenditures Investments	($2,533,000) ($55,000)	($1,547,000) $28,000
Other Investing Activities	($487,000)	$46,000
Net Cash Flows-Investing	($3,075,000)	($1,473,000)
Cash-Flows Financing Activities
Sale and Purchase of Stock	($938,000)	($3,485,000)
Net Borrowings	($1,441,000)	($664,000)
Other Financing Activities	$0	$0
Net Cash Flows-Financing	($3,717,000)	($5,497,000)
Effect of Exchange Rate	$0	$0
Net Cash Flow	$131,000	($1,534,000)

Analyze the income statement, balance sheet, and cash and revenue for any potential risk factors and compliance issues with Generally Accepted Accounting Principles (GAAP) or International Financial Recording Standards (IFRS).

Based on your analysis of risk, devise a statistical and judgmental sampling program for the audit universe.

Recommend the most preferable audit testing procedure based on the audit universe items sampled.