Please use the attached red Rules to solve this question . Analysis and Interpre
ID: 2337420 • Letter: P
Question
Please use the attached red Rules to solve this question .
Analysis and Interpretation of Profitability Balance sheets and income statements for Target Corporation follow. Income Statement For Fiscal Years Ended ($ millions) 2007 2006 2005 $57,878 $ 51,271 $45,682 1,612 1,349 1,157 59,490 52,620 46,839 39,399 34,927 31,445 Selling, general and administrative expenses12,819 11,185 9,797 707 776 737 Sales Credit card revenues Total revenues Cost of sales Credit card expenses 1,496 1,409 1,259 5,069 4,3233,601 572463 570 4,497 3,860 3,031 1.710 1,452 1,146 $2,787 $ 2,408 $1,885 Depreciation and amortization Earnings before interest and income taxes Net interest expense Earnings before income taxes Provisions for income taxes Net earnings ited States)
Explanation / Answer
Hey there !!
I will help you out with answering these sub questons related to Income statement and balance sheet.
Let us go step by step:
First let us prepare our income statement:
Now let us prepare our balance sheet
Now, Let us calculate Net operating profit:
I hope now, the above solurion is clear to you....from this it will help you solve the other parts ndependently.
All the best !
Happy studying :)
Income Statement 2007 2006 2005 Sales 57,878 51,271 45,682 Credit Card Revenues 1,612 1,349 1,157 Total Revenue 59,490 52,620 46,839 Cost of Sales (39,399) (34,927) (31,445) Selling and Admin Expenses (12,819) (11,185) (9,797) Credit Card Expenses (707) (776) (737) Depreciation and Amortisation (1,496) (1,409) (1,259) EBIT (Earnings before Interest and Taxes) 5,069 4,323 3,601 Interest Expense (572) (463) (570) Earnings before taxes 4,497 3,860 3,031 Provision for Taxes (1,710) (1,452) (1,146) Net Earnings 2,787 2,408 1,885