Final answer:
Target's income statement is called the Consolidated Statement of Operations, and for the year ended February 1, 2020, it reported sales of $78,112 million and other key financial figures. Target uses the indirect method for its statement of cash flows, with operating cash flows typically higher than net earnings due to non-cash expenses reconciliation. The largest investing and financing cash flows were capital expenditures and repayments of short-term borrowings, respectively.
Step-by-step explanation:
Target labels its income statement as the Consolidated Statement of Operations. For the year ended February 1, 2020, Target reported the following amounts (in millions):
• Sales: $78,112
• Cost of goods sold (labeled cost of sales): $55,651
• Earnings from continuing operations before income taxes: $4,601
• Net earnings from continuing operations: $3,281
• Net earnings: $3,280
Yes, Target does report items as part of its other comprehensive income. These can include foreign currency translation adjustments, unrealized gains or losses on derivative instruments, and pension and postretirement benefit plan re-measurements.
Target prepares the statement of cash flows using the indirect method. When comparing net earnings to operating cash flows, the latter is typically higher. This is mainly due to the fact that the operating cash flows include non-cash expenses such as depreciation and amortization which are added back to net income. Reconciling items between net income and cash provided by operating activities can account for this difference. For the largest investing cash flow for the year ended February 1, 2020, it was capital expenditures at $3,114 million. The largest financing cash flow was repayments of short-term borrowings, which amounted to $3,401 million.