Please complete required 1-5 in excel for calculations

C10-1 Target Corporation and Wal-Mart Stores, Inc. (Walmart): Identifying depreciation differences and performing financial statement analysis (LO 10-8 2) Target Corporation operates in a single business segment that is designed to enable guests to purchase products seamlessly in stores, online or through mobile devices. Most of its operations are in the United States. Walmart is engaged in the operation of retail, wholesale, and other units located throughout the United States, Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico, and the United Kingdom. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International, and Sam's Club. Information taken from both firms' fiscal 2014 annual reports to shareholders follows. The fiscal 2014 years end in January 2015 Target Corporation Property and Equipment January 31, February 1 $ in millions) Land Buildings and improvements Fixtures and equipment 2014 S6,127 6,143 26,614 25,984 5,199 2015 5,346 Computer hardware and software Construction in progress Accumulated depreciation Property and equipment-net 2,395 757 (15,106 (14,066) S 25,958 $26,412 2,553 424 Property and equipment is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. We amortize leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably assured at the date the leasehold improvements are acquired... . For income tax purposes, accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as incurred. Facility pre-opening costs, including supplies and payroll, are expensed as incurred Estimated useful lives by major asset category are as follows: Asset Buildings and improvements Fixtures and equipment Computer hardware and software Life (in Years) 8-39 2-15 2-7 Selected Income Statement Information Years Ended ($ in millions) Depreciation and amortization Earnings before income taxes Net earnings from continuing operations 2015 $2,129 3,653 2,449 2014 $1,996 4,121 2,214 page 553 Wal-Mart Stores, Inc. Property and Equipment January 31, January 31 ($ in millions) Land Buildings and improvements Fixtures and equipment Transportation equipment Property under capital lease Property and equipment 2015 2014 261 26,184 95,488 42,971 2,785 5,661 173,089 S 26, 97,496 45,044 2,807 5,787 177,395 (63,115) (57,725) Accumulated depreciation Property and equipment, net 114,280 115,364 Asset Buildings and improvements Fixtures and equipment Transportation equipment Life (in Years) 3-40 2-30 3-15 Selected Income Statement Information Years Ended January 31, 2015 January 31 2015 $ in millions) Depreciation and amortization Income from continuing operations before income taxes Income from continuing operations S 9,100 8,800 24.656 16,551 24,799 16,814 Required Assume a 35% tax rate 1. Estimate the average useful life of each firm's long-lived assets as of January 31, 2015 2. Calculate a revised estimate of Walmart's depreciation expense for the year ended January 31, 2015 using the estimated average useful life of Target's assets. Use this amount to recalculate Walmart's income before taxes and income from continuing C10-1 Target Corporation and Wal-Mart Stores, Inc. (Walmart): Identifying depreciation differences and performing financial statement analysis (LO 10-8 2) Target Corporation operates in a single business segment that is designed to enable guests to purchase products seamlessly in stores, online or through mobile devices. Most of its operations are in the United States. Walmart is engaged in the operation of retail, wholesale, and other units located throughout the United States, Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico, and the United Kingdom. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International, and Sam's Club. Information taken from both firms' fiscal 2014 annual reports to shareholders follows. The fiscal 2014 years end in January 2015 Target Corporation Property and Equipment January 31, February 1 $ in millions) Land Buildings and improvements Fixtures and equipment 2014 S6,127 6,143 26,614 25,984 5,199 2015 5,346 Computer hardware and software Construction in progress Accumulated depreciation Property and equipment-net 2,395 757 (15,106 (14,066) S 25,958 $26,412 2,553 424 Property and equipment is depreciated using the straight-line method over estimated useful lives or lease terms if shorter. We amortize leasehold improvements purchased after the beginning of the initial lease term over the shorter of the assets' useful lives or a term that includes the original lease term, plus any renewals that are reasonably assured at the date the leasehold improvements are acquired... . For income tax purposes, accelerated depreciation methods are generally used. Repair and maintenance costs are expensed as incurred. Facility pre-opening costs, including supplies and payroll, are expensed as incurred Estimated useful lives by major asset category are as follows: Asset Buildings and improvements Fixtures and equipment Computer hardware and software Life (in Years) 8-39 2-15 2-7 Selected Income Statement Information Years Ended ($ in millions) Depreciation and amortization Earnings before income taxes Net earnings from continuing operations 2015 $2,129 3,653 2,449 2014 $1,996 4,121 2,214 page 553 Wal-Mart Stores, Inc. Property and Equipment January 31, January 31 ($ in millions) Land Buildings and improvements Fixtures and equipment Transportation equipment Property under capital lease Property and equipment 2015 2014 261 26,184 95,488 42,971 2,785 5,661 173,089 S 26, 97,496 45,044 2,807 5,787 177,395 (63,115) (57,725) Accumulated depreciation Property and equipment, net 114,280 115,364 Asset Buildings and improvements Fixtures and equipment Transportation equipment Life (in Years) 3-40 2-30 3-15 Selected Income Statement Information Years Ended January 31, 2015 January 31 2015 $ in millions) Depreciation and amortization Income from continuing operations before income taxes Income from continuing operations S 9,100 8,800 24.656 16,551 24,799 16,814 Required Assume a 35% tax rate 1. Estimate the average useful life of each firm's long-lived assets as of January 31, 2015 2. Calculate a revised estimate of Walmart's depreciation expense for the year ended January 31, 2015 using the estimated average useful life of Target's assets. Use this amount to recalculate Walmart's income before taxes and income from continuing