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	1,866
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	$40,303

Target 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	4,110	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	$ 2,734

Forecast Targets 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	78069	80879
Cost of sales	55195	57181
Selling, general and administrative expenses	16316	16904
Depreciation and amortization (exclusive of depreciation included in cost of sales)	2565	2778
Operating income	3993	4016
Net interest expense	461	461
Net income income	27	27
Earnings from continuing operations before income taxes	3559	3582
Provision for income taxes	712	716
Net earnings from continuing operations	2847	2866
Discontinued operations, net of tax	0	0
Net earnings	2847	2866

Forecast Targets 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	$1,094

Instructions:

• 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	ANSWER	ANSWER
Inventory	9837	10191
Other current assets	1483	1537
Total current assets	ANSWER	ANSWER
Property and equipment	26637	ANSWER
Operating lease assets	2030	2103
Other noncurrent assets	1327	1375
Total assets	ANSWER	ANSWER
Liabilities and Shareholders' investment
Accounts payable	10149	10514
Accrued and other current liabilities	4372	4529
Current portion of long-term debt and other borrowings	1002	1094
Total current liabilities	15523	16137
Long-term debt and other borrowings	ANSWER	ANSWER
Noncurrent operating lease liabilities	2004	2004
Deferred income taxes	1015	1051
Other noncurrent liabilities	1874	1941
Total noncurrent liabilities	ANSWER	ANSWER
Shareholders' investment
Common stock	43	43
Additional paid-in-capital	6042	6042
Retained earnings	7569	9131
Accumulated other comprehensive loss	-805	-805
Total shareholders' investment	12849	1441
Total liabilities and shareholders' investment	ANSWER	ANSWER