- Identify the inventory method used by Target. How does Target value its inventories? (See Note 12). Why do you think Target selected this inventory method? Explain your answer.
- By using the cost of goods sold formula, you can compute net purchases, which are not reported in the Target financial statements. How much were Target's inventory purchases during the year ended January 28, 2017? Include your calculations. In addition, create a strengths and weaknesses analysis with your work. Please elaborate on why the strengths you identified are strengths. If you included any weaknesses, what would you suggest to Target for how to improve the weaknesses?
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