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The following data (in millions) are taken from the financial statements of Target Corporation: Recent Year Prior Year Revenue $72,618 $71,279 Operating expenses 68,083 66,109 Operating income $ 4,535 $ 5,170 a. For Target Corporation, determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for: Revenue Operating expenses Operating income (For those boxes in which you must enter negative numbers use a minus sign.)

2 Answers

2 votes

Final answer:

To determine the financial changes for Target Corporation, we subtracted the figures of the prior year from the recent year to get the change in millions and used this to calculate the percent change. Results show an increase in revenue and operating expenses, and a decrease in operating income.

Step-by-step explanation:

For Target Corporation, we can calculate the amount of change in millions and the percent of change from the prior year to the recent year for various financial metrics such as revenue, operating expenses, and operating income. To find the change in millions, we subtract the prior year's amount from the recent year's amount for each category. To calculate the percent change, we divide the change in millions by the prior year's amount and multiply by 100.

Revenue:

  • Change in millions: $72,618M - $71,279M = $1,339M
  • Percent of change: ($1,339M / $71,279M) × 100 ≈ 1.9%

Operating Expenses:

  • Change in millions: $68,083M - $66,109M = $1,974M
  • Percent of change: ($1,974M / $66,109M) × 100 ≈ 3.0%

Operating Income:

  • Change in millions: $4,535M - $5,170M = -$635M
  • Percent of change: (-$635M / $5,170M) × 100 ≈ -12.3%

All percentages are rounded to one decimal place. The changes reflect variations in the company's performance from one year to the next, and can be influenced by factors such as cost cutting, reductions in input costs, and market demand.

User Azeem Hassni
by
5.6k points
5 votes

Answer:

1.88% and $1,339

Explanation:

The computation of the amount of change revenue is shown below:-

Amount of change revenue = Recent year - prior year

= $72,618 - $71,279

= $1,339

Percentage of change revenue = (Recent year - prior year) ÷ Prior years

= ($72,618 - $71,279) ÷ $71,279

= $1,339 ÷ $71,279

= 1.88%

We simply applied the above formulas

User Nick Groeneveld
by
6.0k points