Below is the income statement for Target Corporation in 2016 (in millions). Target 2016 Revenue 69,495 Cost of Goods Sold 48,872 Gross Profit 20,623 Gross Profit Margin 29.68% SG&A Expense 13,356 Depreciation & Amortization 2,298 Operating Income 4,969 Operating Margin 7.15% Non-operating Income -- Non-operating Expenses -- Income Before Taxes 3,965 Income Taxes 1,296 Net Income After Taxes 2,669 Continuing Operations 2,669 Discontinued Operations 68 Total Operations 2,737 Total Net Income 2,737 Net Profit Margin 3.94% Diluted EPS from Continuing Operations 4.58 Diluted EPS from Total Operations 4.7 Diluted EPS from Total Net Income 4.7 Dividends Per Share 2.32 The $5 million would be additional issued stock that is used to raise capital for major expansions of the company. This does not directly affect the income statement until the projects are at 100% completion, or when it starts to generate income. The money would also include additional stock options that do not affect the income statement. …show more content…
Statement of Retained Earnings (in millions) Beginning Retained Earnings 2016 $5,884 Plus: Net Income $2,737 $8,621 Less: Dividends $(1,364) Ending Retained Earnings 2016 $7,257 The $5 million would be issued and sold in stock, so this would increase the dividends in the statement of retained earnings. It would also affect the stock options in statement of shareholder’s investments, in which the retained earnings is part of. Below is the project balance sheet for Target Corporation in 2016 (in millions). Target 2016 Assets Current Assets Cash 2,512 Net Receivables 749 Inventories 8,309 Other Current Assets 144 Total Current Assets