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:

What retail indices $($internally measured or externally measured$)$ does Target use to measure the LIFO provision?

Does Target adjust the retail value of inventory for permanent markups or permanent markdowns to effectively report inventory at

the lower of cost or market?

$3$a$.$ Target has agreements with certain vendors whereby Target does not purchase or pay for merchandise until the merchandise is

ultimately sold to a customer. See revenue note #$2.$ Are sales and cost of sales of this inventory included in Target's income

statement?

$3$b$.$ Is unsold inventory at the end of the year included as part of ending inventory in the balance sheet?

Answer is complete but not entirely correct.