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Business, 06.04.2021 04:20 Laylahlettiere
Target Corporation prepares its financial statements according to U. S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material is also available under the Investor Relations link at the company’s website (www. target). Required: 1. What retail indices (internally measured or externally measured) does Target use to measure the LIFO provision? 2. Does Target adjust the retail value of inventory for permanent markups or permanent markdowns to effectively report inventory at the lower of cost or market? 3. Target has agreements with certain vendors whereby Target does not purchase or pay for merchandise until the merchandise is ultimately sold to a customer. Are sales and cost of sales of this inventory included in Target’s income statement? Is unsold inventory at the end of the year included as part of ending inventory in the balance sheet?
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