Altira Corporation provides the following information related to its inventory during the month of August $2024$:Required:

Does Target use average cost, FIFO, or LIFO as its inventory cost flow assumption?

Calculate the gross profit ratio and the inventory turnover ratio for the fiscal year ended February $1,2020.$ Compare Target's ratios

with the industry averages of $24\mathrm{.}5\%$ and $7\mathrm{.}1$ times. Determine whether Target's ratios indicate the company is more or less profitable

and sells its inventory more or less frequently compared to the industry average.

Complete this question by entering your answers in the tabs below.

Required $3$

Calculate the gross profit ratio and the inventory turnover ratio for the fiscal year ended February $1,2020.$ Compare Target's

ratios with the industry averages of $24\mathrm{.}5\%$ and $7\mathrm{.}1$ times. Determine whether Target's ratios indicate the company is more or

less profitable and sells its inventory more or less frequently compared to the industry average.

Note: Do not round intermediate calculation. Round "Gross profit ratio" to $1$ decimal place and "Inventory turnover ratio" to $2$

decimal places.

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August $1$ Inventory on hand$-2,700$ units; cost $$6\mathrm{.}80$ each.

August $8$ Purchased $13,500$ units for $$6\mathrm{.}20$ each.

August $14$ Sold $10,800$ units for $$12\mathrm{.}70$ each.

August $18$ Purchased $8,100$ units for $$5\mathrm{.}60$ each.

August $25$ Sold $9,800$ units for $$11\mathrm{.}70$ each.

August $28$ Purchased $4,700$ units for $$5\mathrm{.}80$ each.

August $31$ Inventory on hand$-8,400$ units.

Exercise $8-14($Algo$)$ Part $1$

Required:

Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August $31,$

$2024,$ balance sheet and the cost of goods sold it would report in its August $2024$ income statement using the FIFO method.