Question

Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material is also available under the Investor Relations link at the company’s website (www.target.com).

Required:
By what name does Target label its income statement?

Answer 1

Target Corporation labels its income statement as the 'Consolidated Statement of Operations,' which details the company's financial performance including corporate profits after tax and allows analysis of the effective tax rate.

Step-by-step explanation:

The income statement prepared by Target Corporation is labeled as the Consolidated Statement of Operations. This financial document provides insight into the company's financial performance, including its revenues, expenses, and net income over a specific reporting period. Companies following U.S. GAAP, like Target, use the income statement to report corporate profits after tax, which are adjusted for inventory valuation and capital consumption.

The income statement is a crucial document for analyzing a company's profitability and operational efficiency. It can also highlight the effective tax rate, which is the average rate at which a company's pre-tax profits are taxed and includes various tax benefits the company may receive.