VII. Report for CEO

At the most recent strategic planning meeting, the board of directors of your company has voted to issue additional stock to raise capital for major expansions for the company in the next five years. The board is considering $$5$ billion. Take the most recent financial statements and prepare a set of projected financial statements based on the given assumptions. The CEO requests that you prepare a written report $($including the financial statements$)$ for her.

Generate a projected income statement based on the given scenario.

Analyze the impact on the income statement based on the given scenario.

TARGET CORPORATION $($TGT$)$

CONSOLIDATED STATEMENTS OF OPERATIONS

Fiscal Year Ended

shares in Millions, $ in Millions January $28,2023$ January $29,2022$ January $30,2021$ February $1,2020$ February $2,2019$

Income Statement

NET SALES $$105,803$ $$107,588$ $$104,611$ $$92,400$ $$77,130$

Cost of Sales $77,73682,22974,96366,17754,864$

GROSS PROFIT $28,06725,35929,64826,22322,266$

Operating Expenses:

Selling, General and Administrative $21,55420,65819,75218,61516,233$

Depreciation and Amortization $2,4152,3851,6402,2302,357$

Total Operating Expenses $23,96923,04321,39220,84518,590$

OPERATING INCOME $5,7072,3168,2565,3783,676$

Interest and Other $($Income$)$ Expense:

Interest and Investment Income $(92)(48)(382)16(9)$

Interest Expense $502478421977477$

Other $----(67)$

Interest and Other, net $41043039993401$

EARNINGS BEFORE PROVISION FOR INCOME TAXES $5,2971,8868,2174,3853,275$

Provision for Income Taxes $1,1596381,9611,178921$

NET EARNINGS $$4,138$ $$1,248$ $$6,256$ $$3,207$ $$2,354$

Weighted Average Common Shares $461\mathrm{.}5462\mathrm{.}1488\mathrm{.}1500\mathrm{.}6510\mathrm{.}9$

BASIC EARNINGS PER SHARE $$8\mathrm{.}97$ $$2\mathrm{.}70$ $$12\mathrm{.}82$ $$6\mathrm{.}41$ $$4\mathrm{.}61$

Diluted Weighted Average Common Shares $462\mathrm{.}8464\mathrm{.}7492\mathrm{.}7505\mathrm{.}4515\mathrm{.}6$

DILUTED EARNINGS PER SHARE $$8\mathrm{.}94$ $$2\mathrm{.}69$ $$12\mathrm{.}70$ $$6\mathrm{.}35$ $$4\mathrm{.}57$