- 38 -
figures for inventory periods that ended in taxable years ending
in 1980 through 1993, nevertheless, provides an important
perspective on sales and shrinkage data for Target. That
comparison produced the following results:
TARGET - COMPARISON OF VERIFIED AND ACCRUED SHRINKAGE FOR INVENTORY PERIODS7
Verified Shrinkage Accrued Shrinkage Accrued Minus Verified
TYE in $000 %Sales $000 %Sales $000 %Sales %Difference
1980 17,513 1.94 20,689 2.29 3,175 0.35 18.04
1981 25,608 2.25 25,763 2.27 156 0.02 0.89
1982 37,186 2.21 36,605 2.18 -580 -0.03 -1.36
1983 41,733 2.15 43,983 2.26 2,250 0.11 5.12
1984 51,324 2.02 61,464 2.42 10,141 0.40 19.80
1985 65,194 2.00 76,076 2.33 10,882 0.33 16.50
1986 80,249 2.20 81,370 2.23 1,121 0.03 1.36
1987 91,512 2.30 85,749 2.15 -5,763 -0.15 -6.52
1988 87,816 2.05 91,068 2.12 3,252 0.07 3.41
1989 115,560 1.90 145,048 2.38 29,488 0.48 25.26
1990 97,610 1.57 147,806 2.37 50,196 0.80 50.96
1991 148,717 1.92 169,731 2.19 21,014 0.27 14.06
1992 130,260 1.59 163,944 2.00 33,683 0.41 25.79
7 Dr. Gaffney notes that the columns “may not foot and
crossfoot due to rounding.” In addition, he notes that the data
for 1981, which was provided by petitioner, do not appear
mathematically correct, and the 1993 data include warehouse
shrinkage that was computed separately in that year. Lastly, we
have taken the liberty of deleting Dr. Gaffney's aggregate
calculations because those calculations did not take into account
the adjustment to book inventories following physical
inventories.
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