Income Statement Retained Earnings Statement and Balance She

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.

Instructions:

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

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:

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

1 more Check My Work uses remaining.

Solution

Part 1

TARGETCORPORATION
Income Statement
For the Year Ended January 31, 20Y2
(in millions)
Sales $72618
Expenses:
Cost of goods sold $51278
Selling, general, and administrative expenses 14676
Income tax expense 1204
Interest expense 882
Other expenses 6214
Total expenses 74254
Net loss $(1626)

Part 2

TARGETCORPORATION
Retained Earnings Statement
For the Year Ended January 31, 20Y2
(in millions)
Retained earnings, February 1, 20Y1 $ 12599
Less net loss $1636
Less dividends and other reductions 1319
Retained earnings, January 31, 20Y2 $ 9644
3. TARGET CORPORATION
Balance Sheet
January 31, 20Y2
(in millions)
Assets
Cash $ 2210
Inventories 8790
Property, plant, and equipment 25958
Other assets 4446
Total assets $41404
Liabilities
Accounts payable $ 7759
Debt and other borrowings 12705
Other liabilities 6943
Total liabilities $27407
Stockholders Equity
Capital stock $ 4353 (3579+721+53)
Retained earnings 9644
Total stockholders equity 13997
Total liabilities and stockholders equity $41404