Question

Common-Size Income Statements

Following is the income statement for Target Corporation. Prepare Target’s common-size income statement for the fiscal year ended January 31, 2015.
(Round your answers to one decimal place.)

($ millions)	Fiscal year ended January 31, 2015
Sales revenue	$72,618
Cost of sales	51,278
Selling, general and administrative expenses	14,676
Depreciation and amortization	2,129
Earnings from continuing operations before interest and income taxes	4,535
Net interest expense	882
Earnings from continuing operations before income taxes	3,653
Provision for income taxes	1,204
Net earnings from continuing operations	2,449
Discontinued operations, net of tax	(4,085)
Net earnings (loss)	$(1,636)

TARGET CORPORATION Common-Size Income Statement
Year ended:	January 31, 2015
Sales revenue	Answer%
Cost of sales	Answer%
Selling, general and administrative expenses	Answer%
Depreciation and amortization	Answer%
Earnings from continuing operations before interest expense and income taxes	Answer%
Net interest expense	Answer%
Earnings from continuing operations before income taxes	Answer%
Provision for income taxes	Answer%
Net earnings from continuing operations	Answer%
Discontinued operations, net of tax	Answer%
Net earnings (loss)	Answer%

Answer 1

TARGET CORPORATION
Common-Size Income Statement
Year ended:	January 31, 2015
Sales revenue	100.0%
Cost of sales	70.6%
Selling, general and administrative expenses	20.2%
Depreciation and amortization	2.9%
Earnings from continuing operations before interest expense and income taxes	6.2%
Net interest expense	1.2%
Earnings from continuing operations before income taxes	5.0%
Provision for income taxes	1.7%
Net earnings from continuing operations	3.4%
Discontinued operations, net of tax	-5.6%
Net earnings (loss)	-2.3%

Every line item in the income statement is divided by the sales revenue.