Targets Annual report from 2017

A30. In what note does Target disclose its policy with respect to accounting for merchandise returns?

A31. Does Target have accounts receivable? Speculate as to why it has the balance it has.

A32. Does Target use Average cost, FIFO, or LIFO as its inventory cost flow assumption? Target uses LIFO.

A33. In addition to the purchase price, what additional expenditures does the company include in the initial cost of inventory?

A34. Calculate the gross profit ratio and the inventory turnover ratio for the fiscal year ended February 1, 2017. Compare Targets ratios with the industry averages of 24.5% and 7.1 times. Determine whether Targets ratios indicate the company is more/less profitable and sells its inventory more/less frequently compared to the industry average.

A35. What retail indices (Internally measured or externally measured) does Target use to measure the LIFO provision?

A36. 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?

A37. 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 Targets income statement? Is unsold inventory at the end of the year included as part of ending inventory in the balance sheet?