Refer to Target Corporation's financial statements (http://investors.target.com/phoen
(millions, except per share data)
2008
2007
2006
Sales
$ 62,884 $ 61,471 $ 57,878
Credit card revenues
2,064 1,896 1,612
Total revenues
64,948 63,367 59,490
Cost of sales
44,157 42,929 40,366
Selling, general and administrative expenses
12,954 12,670 11,852
Credit card expenses
1,609 837 707
Depreciation and amortization
1,826 1,659 1,496
Earnings before interest expense and income taxes
4,402 5,272 5,069
Net interest expense
Nonrecourse debt collateralized by credit card receivables
167 133 98
Other interest expense
727 535 499
Interest income
(28 ) (21 ) (25 )
Net interest expense
866 647 572
Earnings before income taxes
3,536 4,625 4,497
Provision for income taxes
1,322 1,776 1,710
Net earnings
$ 2,214 $ 2,849 $ 2,787
Basic earnings per share
$ 2.87 $ 3.37 $ 3.23
Diluted earnings per share
$ 2.86 $ 3.33 $ 3.21
Weighted average common shares outstanding
Basic
770.4 845.4 861.9
Diluted
773.6 850.8 868.6
See accompanying Notes to Consolidated Financial Statements.
26
Refer to Target Corporation's financial statements (http://investors.target.com/phoenix.zhtml?p=irol-irhome&ref=nav%5Ffooter%5Finvestors&c=65828) .
Target Corporation is currently seeking additional capital to expand its operations. Two companies have shown interest in providing additional capital.
Company #1 is interested in investing in the organization and, therefore, would like to have part ownership through the sale of new stock.
Company #2 is interested in providing a loan to the Target Corporation.
Both organizations need to know more about the financial stability of Target.
As an employee of Target, your supervisor needs you to write a memo in which you explain what information from the Target Corporation's financial statements will be highlighted when representatives of Target meet with each of these companies. In your memo, be sure to explain which information will be highlighted to Company #1 and which information will be highlighted to Company #2 and why. Explain any differences in the information that you have chosen to highlight.
