This case uses both the income statement (consolidated statements of operations) and the balance sheet (consolidated statements of financial position) of Target Corporation.
Visit https://www.pearsonglobaleditions.com/Horngren to view a link to the Target Corporation Fiscal 2018 Annual Report, for the fiscal year ending on February 2, 2019.
Requirements

1. What was the value of the company’s inventory at February 2, 2019, and February 3, 2018?
2. Review Note 9 (specifically Inventories) in the Notes to Consolidated Financial Statements. What does Target include in the cost of inventory?
3. What was the amount of Target’s cost of goods sold (cost of sales) for the year ending February 2, 2019, and the year ending February 3, 2018?
4. What income statement format does Target use? Explain.
5. Compute Target’s gross profit percentage for the year ending February 2, 2019, and the year ending February 3, 2018. 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?