“Source: Target Corporations Form 10-K for the year ended February 2, 2019.
Required:
All questions relate to fiscal 2018 unless stated otherwise.
Solve for the unknowns (A through F).
Explain how adopting ASC Topic 842 changed Targets balance sheet at February 4, 2018 (the first day of the 2018 fiscal year).
Explain why the amount of Operating Lease Assets differs from the amount of total Operating lease liabilities.
Explain why the amount of Buildings and Improvements, net of Accumulated Depreciation differs from the total amount of Finance lease liabilities.
Show how the fiscal 2018 income statement would change if the operating leases were treated as finance leases.
Show how the fiscal 2018 statement of cash flows would change if the operating leases were treated as finance leases.
Show how the February 2, 2019, balance sheet would change if the operating leases were treated as finance leases.”
