Question

Income Statement, Retained Earnings Statement, and Balance Sheet

The following financial data were adapted from a recent annual report of Target Corporation for the year ending January 31.

	In millions
Accounts payable	$ 7,759
Cash	2,210
Common stock	53
Cost of goods sold	51,278
Debt and other borrowings	12,705
Income tax expense	1,204
Interest expense	882
Inventories	8,790
Other assets	4,446
Other expenses	6,214
Other liabilities	6,943
Property, plant, and equipment	25,958
Sales	72,618
Selling, general, and administrative expenses	14,676

Instructions:

1. Prepare Target's income statement for the year ending January 31.

Target Corporation
Income Statement
For the Year Ended January 31 (in millions)
		$
Expenses:
	$
Total expenses
		$

2. Prepare Target's statement of stockholders’ equity for the year ending January 31, 20Y2. Use the minus sign to indicate a net loss. If an amount box is zero, enter "0". Use the following additional information for the year:

No common stock was issue during the year
Retained earnings Feb. 1 of prior year		$12,599
Dividends		1,319
Other stockholder equity items on Feb. 1 of prior year		3,579
Increase in other stockholder equity items		721

Target Corporation
Statement of Stockholders’ Equity
For the Year Ended January 31 (in millions)
	Common Stock	Retained Earnings	Other Items	Total
Balances, Feb. 1 of prior year	$	$	$	$
Balances, January 31	$	$	$	$

3. Prepare a balance sheet as of January 31, for Target.

Target Corporation
Balance Sheet
January 31 (in millions)
Assets
		$
Total assets		$
Liabilities
	$
Total liabilities		$
Stockholders' Equity
	$
Total stockholders' equity
Total liabilities and stockholders' equity		$

1 more Check My Work uses remaining.

Answer 1

1.

Target Corporation
Income Statement
For the Year Ended January 31 (in millions)
Sales		72618
Expenses:
Cost of goods sold	51278
Selling, general, and administrative expenses	14676
Other expenses	6214
Interest expense	882
Income tax expense	1204
Total expenses		74254
Net income (loss)		-1636

2.

Target Corporation
Statement of Stockholders' Equity
For the Year Ended January 31 (in millions)
	Common Stock	Retained Earnings	Other Items	Total
Balances, Feb. 1 of prior year	53	12599	3579	16231
Increase in other stockholder equity items	0	0	721	721
Net loss	0	-1636	0	-1636
Dividends	0	-1319	0	-1319
Balances, January 31	53	9644	4300	13997

3.

Target Corporation
Balance Sheet
January 31 (in millions)
Assets
Cash		2210
Inventories		8790
Other assets		4446
Property, plant, and equipment		25958
Total assets		41404
Liabilities
Accounts payable	7759
Debt and other borrowings	12705
Other liabilities	6943
Total liabilities		27407
Stockholders' Equity
Common stock	53
Other items	4300
Retained earnings	9644
Total stockholders' equity		13997
Total liabilities and stockholders' equity		41404