Required information

Target Corporation prepares its financial statements according to U$.$S$.$ GAAP. Target's financial statements and disclosure

notes for the year ended February $1,2020,$ are available here. This material is also available under the Investor Relations

link at the company's website $($

www$.$target.com$).$

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 $1$

Required $3$

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

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