Answer:
Target Corporation
Common-Size Income Statement
Year ended: January 28, 2012
Sales revenue 100.0%
Cost of sales 61.8%
Selling, general and administrative expenses 18.2%
Depreciation and amortization 2.8%
Earnings from continuing operations before interest
expense and income taxes 18.5%
Net interest expense 1.1%
Earnings from continuing operations before income taxes 17.4%
Provision for income taxes 2%
Net earnings from continuing operations 15.4%
Every line item in the income statement is divided by the sales revenue.
Explanation:
Fiscal year ended January 28, 2012
Sales = $77,466
Net credit card revenues = 1,399
Cost of sales = 47,860
Selling, general and administrative expenses = 14,106
Credit card expenses = 446
Depreciation and amortization = 2,131
Earnings before interest expense and income taxes = 14,322
Net interest expense = 866
Earnings before income taxes = 13,456
Provision for income taxes = 1,527
Net earnings = $11,929
