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	$13,714
Cash	1,588
Common stock	5,724
Cost of goods sold	95,720
Debt and other borrowings	34,966
Income tax expense	3,054
Interest expense	1,732
Inventories	15,836
Other assets	5,684
Other expenses	5,154
Other liabilities	12,938
Property, plant, and equipment	58,298
Sales	136,932
Selling, general, and administrative expenses	28,212

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)
Sales		$
Expenses:
Cost of goods sold	$
Selling, general, and administrative expenses
Income tax expense
Interest expense
Other expenses
Total expenses
Net income		$

2. Prepare Target's retained earnings statement for the year ending January 31, 20Y2. If an amount box is zero, enter "0".

No common stock was issue during the year
Retained earnings Feb. 1 of prior year		$12,698
Dividends		2,798
Other stockholder equity items on Feb. 1 of prior year		1,104
Increase in other stockholder equity items		0

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	$	$	$	$
Net income for year
Dividends
Balances, January 31	$	$	$	$

Feedback

Keep in mind that stockholders' equity increases with additional stock issues and also when the retained earnings balance increases through net income and gains. Stockholders' equity decreases when dividends are declared and paid and also when the retained earnings balance decreases through net losses.

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

Target Corporation
Balance Sheet
January 31 (in millions)
Assets
Cash		$
Inventories
Property, plant, and equipment
Other revenue (net)
Total assets		$
Liabilities
Accounts payable	$
Common stock
Retained earnings
Total liabilities		$
Stockholders' Equity
Common stock	$
Total stockholders' equity
Total liabilities and stockholders' equity		$

Feedback

The balance sheet is a formal presentation of the accounting equation and includes the assets, liabiliti

Answer 1