The Annual Report you will be using is the 2015 Annual Report. This case uses both the income statement (consolidated statements of operations) and the balance sheet (consolidated statements of financial position) of Target Corporation.

Requirements

1.What was the value of the companys inventory at January 30, 2016, and January 31, 2015?

2.Review Note 12 (specifically Inventories) in the Notes to Consolidated Financial Statements. What does Target include in the cost of inventory?

3.What was the amount of Targets cost of goods sold (cost of sales) for the year ending January 30, 2016, and the year ending January 31, 2015?

4.What income statement format does Target use? Explain.

5.Compute Targets gross profit percentage for the year ending January 30, 2016, and the year ending January 31, 2015. Did the gross profit percentage improve, worsen, or hold steady? Assuming the industry average for gross profit percentage is 35%, how does Target compare in the industry?

2015 the Annual Report of Target Corporation:

https://investors.target.com/static-files/5c46abf3-aba2-41bb-b519-a792e5122d1a