Refer to the financial statements of Target given in Appendix B at the end of this book.

Question:

Refer to the financial statements of Target given in Appendix B at the end of this book. All dollar amounts in the statements and answers are in millions.

Data from in Appendix B

Required:
1. How much inventory does the company hold at the end of the most recent year?
a. $44,949
b. $8,992
c. $20,756
d. $10,653
e. None of the above
2. Estimate the amount of inventory that the company purchased during the current year.
a. $67,838
b. $64,516
c. $66,177
d. $10,653
e. None of the above
3. What method does the company use to determine the cost of its inventory?
a. FIFO
b. LIFO
c. Average Cost
d. Specific Identification
e. None of the above
4. What is the inventory turnover ratio and average days to sell inventory for the current year and what does this suggest about the company? (Round your answer to two decimal places.)
a. 7.36, suggesting that, on average, it takes the company 49.59 days to sell an item of inventory.
b. 6.21, suggesting that, on average, it takes the company 58.78 days to sell an item of inventory.
c. 6.74, suggesting that, on average, it takes the company 54.15 days to sell an item of inventory.
d. 9.53, suggesting that, on average, it takes the company 38.30 days to sell an item of inventory.
e. None of the above