Required:

$1.$ Does Target use average cost, FIFO, or LIFO as its inventory cost flow assumption?

$3.$ Calculate the gross profit ratio and the inventory turnover ratio for the fiscal year ended February $3,2018.$ 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$/$less profitable and sells its inventory more$/$less frequently compared to the industry average.