Show me the steps to solve Two$-$Year$-$Ahead Forecasting of Financial Statement

Following are the financial statements of Target Corporation from its fiscal year ended February $2,2019.$

Target Corporation

Consolidated Statements of Financial Position

For Fiscal Years Ended $($$ millions$)$ Feb. $2,2019$ Feb. $3,2018$

Assets

Cash and cash equivalents $$1,556$ $$2,643$

Inventory $9,4978,597$

Other current assets $1,4661,300$

Total current assets $12,51912,540$

Property and equipment

Land $6,0646,095$

Buildings and improvements $29,24028,131$

Fixtures and equipment $5,9125,623$

Computer hardware and software $2,5442,645$

Construction$-$in$-$progress $460440$

Accumulated depreciation $(18,687)(18,398)$

Property and equipment, net $25,53324,536$

Operating lease assets $1,9651,884$

Other noncurrent assets $1,2731,343$

Total assets $$41,290$ $$40,303$

Liabilities and Shareholders' investment

Accounts payable $$9,761$ $$8,677$

Accrued and other current liabilities $4,2014,094$

Current portion of long$-$term debt and other borrowings $1,052281$

Total current liabilities $15,01413,052$

Long$-$term debt and other borrowings $10,22311,117$

Noncurrent operating lease liabilities $2,0041,924$

Deferred income taxes $972693$

Other noncurrent liabilities $1,7801,866$

Total noncurrent liabilities $14,97915,600$

Shareholders' investment

Common stock $4345$

Additional paid$-$in$-$capital $6,0425,858$

Retained earnings $6,0176,495$

Accumulated other comprehensive loss $(805)(747)$

Total shareholders' investment $11,29711,651$

Total liabilities and shareholders' investment $$41,290$ $$40,303$

Target Corporation

Consolidated Statements of Operations

$12$ Months Ended $($$ millions$)$ Feb. $2,2019$ Feb. $3,2018$ Jan. $28,2017$

Total revenue $$75,356$ $$72,714$ $$70,271$

Cost of sales $53,29951,12549,145$

Selling, general and administrative expenses $15,72315,14014,217$

Depreciation and amortization $($exclusive of depreciation included in cost of sales$)2,2242,2252,045$

Operating income $4,1104,2244,864$

Net interest expense $461653991$

Net other $($income$)$ expense $(27)(59)(88)$

Earnings from continuing operations before income taxes $3,6763,6303,961$

Provision for income taxes $7467221,295$

Net earnings from continuing operations $2,9302,9082,666$

Discontinued operations, net of tax $7668$

Net earnings $ $2,937$ $ $2,914$ $ $2,734$

Forecast Target$$s income statements for the fiscal years ended February $2020$ and $2021$ using the following assumptions and data.

Assumptions $($$ millions$)$

Revenue growth $3\mathrm{.}6\%$

Cost of sales as $\%$ of Total revenue $70\mathrm{.}7\%$

Selling, general and administrative expenses as $\%$ of Total revenue $20\mathrm{.}9\%$

Forecasted depreciation expense for year ended February $2020$ $$2,565$

Forecasted depreciation expense for year ended February $2021$ $$2,778$

Amortization expense $$0$

Net interest expense No change

Net other $($income$)$ expense No change

Discontinued operations, net of tax $$0$

Tax rate $($as $\%$ pretax income$)20\%$

Instructions:

Round answers to the nearest whole number.

Do not use negative signs with any of your answers.

Target Corporation

Consolidated Statements of Operations

$12$ Months Ended $($$ millions$)$ Feb. $2020$

Feb. $2021$

Total revenue Answer $1$

$78,069$

Answer $2$

$75,332$

Cost of sales Answer $3$

$55,195$

Answer $4$

$53,260$

Selling, general and administrative expenses Answer $5$

$16,316$

Answer $6$

$15,744$

Depreciation and amortization $($exclusive of depreciation included in cost of sales$)$ Answer $7$

$2,565$

Answer $8$

$2,778$

Operating income Answer $9$

$3,993$

Answer $10$

$3,550$

Net interest expense Answer $11$

$461$

Answer $12$

$461$

Net other $($income$)/$ expense Answer $13$

$27$

Answer $14$

$27$

Earnings from continuing operations before income taxes Answer $15$

$3,559$

Answer $16$

$3,116$

Provision for income taxes Answer $17$

$712$

Answer $18$

$623$

Net earnings from continuing operations Answer $19$

$2,847$

Answer $20$

$2,493$

Discontinued operations, net of tax Answer $21$

$0$

Answer $22$

$0$

Net earnings Answer $23$

$2,847$

Answer $24$

$2,493$

Forecast Target$$s balance sheets for the fiscal years ended February $2020$ and $2021.$ Combine the forecasted property and equipment accounts into one account, titled Property and equipment, net. Use the following assumptions and data.

Assumptions $($$ millions$)$

Inventory as $\%$ Total revenue $12\mathrm{.}6\%$

Other current assets as $\%$ Total revenue $1\mathrm{.}9\%$

Operating lease assets as $\%$ Total revenue $2\mathrm{.}6\%$

Other noncurrent assets as $\%$ Total revenue $1\mathrm{.}7\%$

Accounts payable as $\%$ Total revenue $13\mathrm{.}0\%$

Accrued and other current liabilities as $\%$ Total revenue $5\mathrm{.}6\%$

Noncurrent operating lease liabilities No change

Deferred income taxes as $\%$ Total revenue $1\mathrm{.}3\%$

Other noncurrent liabilities as $\%$ Total revenue $2\mathrm{.}4\%$

Common stock No change

Additional paid$-$in capital No change

Accumulated other comprehensive loss No change

CAPEX$/$Current period total revenue $4\mathrm{.}70\%$

Dividends for year ended February $2019$ $$1,335$

Dividend payout $45\mathrm{.}5\%$

Stock buybacks per year $$0$

Long term debt, current porti