Required Informatlon

Target Case $($Static$)[$LO$8-1,8-4,8-7]$

Target Corporation prepares its financlal statements according to U$.$S$.$ GAAP. Target's financlal statements and disclosure notes for the year ended February $1,2020,$ are available here. This material is also available under the Investor Relations link at the company's website $($www$.$target.com$).$

Target Case $($Static$)$ Parts $1$ and $3$

Required:

$1.$ Does Target use average cost, FIFO, or LIFO as its inventory cost flow assumption?

$3.$ Calculate the gross profit ratio and the inventory turnover ratio for the fiscal year ended February $1,2020.$ Compare Target's ratios with the industry averages of $\backslash (24\mathrm{.}5\backslash \%\backslash )$ and $7\mathrm{.}1$ times. Determine whether Target's ratios indicate the company is more or less profitable and sells its inventory more or less frequently compared to the Industry average.

Complete this question by entering your answers in the tabs below.

Calculate the gross profit ratio and the inventory turnover ratio for the fiscal year ended February $1,2020.$ Compare Target's ratios with the industry averages of $\backslash (24\mathrm{.}5\backslash \%\backslash )$ and $7\mathrm{.}1$ times. Determine whether Target's ratios indicate the company is more or less profitable and sells its inventory more or less frequently compared to the industry average.

Note: Do not round intermediate calculation. Round "Gross profit ratio" to $1$ decimal place and "Inventory turnover ratio" to $2$ decimal places. Exercise $8-28($Algo$)$ Dollar$-$value LIFO $[$LO$8-8]$

Cars Electronics adopted the dollar$-$value LIFO method on January $1,2024,$ when the Inventory value of its one inventory pool was $\backslash (\backslash$$ $900,000\backslash ).$ The company decided to use an external Index, the Consumer Price Index $($CPI$),$ to adjust for changes in the cost level. On January $1,2024,$ the CPI was $200.$ On December $31,2024,$ Inventory valued at year$-$end cost was $\backslash$$$1,078,000$ and the CPI was $220.$

Required:

Calculate the inventory value at the end of $2024$ using the dollar$-$value LIFO method.

Note: Round "Year end cost Index" to $2$ decimal places.