The notes are an important part of a companys financial statements, giving valuable details that would clutter the tabular data presented in the statements. This case will help you learn to use a companys inventory notes.

Target Corporations Fiscal 2020 Annual Report

1. By using the cost of goods sold formula, you can compute net purchases, which are not reported in the Target financial statements. How much were Targets inventory purchases during the year ended January 31, 2021?

2. Determine Targets inventory turnover and days sales in inventory for the year ended January 31, 2021. (Round each ratio to one decimal place.) How do Targets inventory turnover and days sales in inventory compare with Kohls Corporations for the year ended January 31, 2021? Explain.