Two-Year-Ahead Forecasting of Financial Statement Following are the financial statements of Target Corporation from its FY2015 annual report.

Target Corporation
Consolidated Statements of Operations
		12 Months Ended
$millions		Jan. 30, 2016	Jan. 31, 2015	Feb. 01, 2014
Sales		73,785	72,618	71,279
Cost of sales		51,997	51,278	50,039
Gross margin		21,788	21,340	21,240
Selling, general and administrative expenses		14,665	14,676	14,465
Depreciation and amortization		2,213	2,129	1,996
Gain on sale		(620)	-	(319)
Earnings from continuing operations before interest expense & income taxes		5,530	4,535	5,170
Net interest expense		607	882	1,049
Earnings from continuing operations before income taxes		4,923	3,653	4,121
Provision for income taxes		1,602	1,204	1,427
Net earnings from continuing operations		3,321	2,449	2,694
Discontinued operations, net of tax		42	(4,085)	(723)
Net earnings (loss)		3,363	(1,636)	1,971

Target Corporation
Consolidated Statements of Financial Position
$millions		Jan. 30, 2016	Jan. 31, 2015
Assets
Cash and cash equivalents, inc. short-term investments of $3,008 and $1,520		$4,046	$2,210
Inventory		8,601	8,282
Assets of discontinued operations		322	1,058
Other current assets		1,161	2,074
Total current assets		14,130	13,624
Property and equipment, net		25,217	25,952
Noncurrent assets of discontinued operations		75	717
Other noncurrent assets		840	879
Total assets		$40,262	$41,172
Liabilities and Shareholders' investment
Accounts payable		$7,418	$7,759
Accrued expenses and other current liabilities		4,236	3,783
Current portion of LT debt and other borrowings		815	91
Liabilities of discontinued operations		153	103
Total current liabilities		12,622	11,736
Long-term debt and other borrowings		11,945	12,634
Deferred income taxes		823	1,160
Noncurrent liabilities of discontinued operations		18	193
Other noncurrent liabilities		1,897	1,452
Total noncurrent liabilities		14,683	15,439
Shareholders' investment
Common stock		50	53
Additional paid-in-capital		5,348	4,899
Retained earnings		8,188	9,644
Accumulated other comprehensive loss
Pension and other benefit liabilities		(588)	(561)
Currency translation adjustment and cash flow hedges		(41)	(38)
Total shareholders' investment		12,957	13,997
Total liabilities and shareholders' investment		$40,262	$41,172

Required:

Forecast Target's FY2016 and FY2017 income statements and balance sheets. Use the following assumptions and data:

-Assume that sales grow by 3% each year.

-Forecast income statement and balance sheet relations as a percentage of sales and round to three decimal places. For example, Cost of sales/Sales = 0.70471 or %70.5%). Use the same forecast assumptions for both years.

-Target's long-term debt footnote indicates maturities of $751 million in FY2016, $2,251 million in FY2017, and $201 million in FY2018.

-Assume that in FY2016, CAPEX will be 1.9% of sales and depreciation expense will be 8.4% of the PPE balance at the start of the year.

-Target paid $1,362 million in dividends in FY2015.