Use the Target Corporation’s Form 10-K to answer the following questions related

Question

Use the Target Corporation’s Form 10-K to answer the following questions related to Target’s fiscal year end of January 30, 2016. Target’s Form 10-K is available at https://www.sec.gov/cgi-bin/viewer?action=view&cik=27419&accession_number=0000027419-16-000043&xbrl_type=v# Section 2: Chapter 5 material: What percentage of Target’s total assets was comprised of inventory? What cost flow method did Target use to account for its inventory? Target had arrangements with some of its vendors such that it does not purchase or pay for merchandise inventory until the merchandise is sold to outside customers. Was the cost of these goods ever included in the Inventory account?

Explanation / Answer

1.percentage of Target’s total assets comprised of inventory = inventory / total assets = 8601 / 40262 = 21.36%

2. The majority of Target’s inventory is accounted for under the retail inventory accounting method (RIM) using the last-in, first-out (LIFO) method.

3. The cost of such goods is not in the inventory because of the virtually simultaneous purchase and sale of this inventory

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.