Question

eBook Show Me How Calculator Pred them Analyze Target The following data (in millions) are taken from the financial statements of Target Corporation (TGT), the owner of Target stores: Year 2 Year 1 Revenue $73,785 $72,618 Operating expenses (68,875) (68,083) Operating income $4,910 $4,535 a. For Target, determine the amount of change in millions and the percent of change rounded to one decimal place from Year 1 to Year 2 for: Amount in million Percentage 1. Revenue % 2. Operating expenses % 3. Operating income b. The revenue operating income between the two years, while the operating expenses grew. Thus, expenses grew than revenues. As a result, in Year 2

Answer 1

a 1) Revenue :

Amount in millions = $73,785 - $72,618

= $1,167 millions

Percentage change (%) = ( $1,167 / $72,618 ) * 100

= 1.6%

a 2) Operating Expense:

Amount in millions = $68,875 - $68,083

= $792 millions

Percentage change (%) = ( $792 / $68,083 ) * 100

= 1.16% OR 1.2%

a 3) Operating Income:

Amount in millions = $4,910 - $4,.535

= $375

Percentage change (%) = ( $375 / $4,535 ) * 100

= 8.26% OR 8.3%

b) The revenue increases between the two years,while the operating expenses grew.Thus, expenses grew less than revenues. As a result operating income increases in year 2.