1, 2, and 3 is what I need help with

AN AIRLINE COMPANY After a couple of sleepless nights, Darrell finally felt like he had some solid understanding of ASU 842. To see it in action, however, is an entirely different story. Darrell has enough experience in reading financial statements to know that he still has a lot to do. In the past, when facing a daunting task, Darrell always finds it helpful to break down the task into manageable pieces and start small. So instead of diving into how ASU 842 affected the whole airline industry, Darrell decided to investigate the issue on a much smaller scale. Southwest Airlines is one company he heard people mention in meetings. He thinks it worth a look into this company's financial statements to see what role leases play in this company Being an accounting major who has worked as a financial analyst in the past, Darrell never felt comfortable writing any report without some numbers. All the policy and regulation thoughts made him dizzy. Even though he has finished the major part of the report on what ASU 342 is and how airline company has been reporting differently according to ASU 842, he wants to add some quantitative analysis. Based on his experience, Darrell knows a company reports aggregated information in their financial statements but reveals a lot more details in the notes. So, he started to pou through Southwest's notes to their financial statements and focused primarily on lease-related charts. He found something quite fascinating. In Southwest 2018 amual report, he found the following table: (in millions) 2019 2020 2021 2022 2023 Thereafter Total minimum lease payments Less amount representing interest Present value of minimum lease payments (a) Less current portion Long-term portion Capital Operating leases leases 111 S 348 109 357 105 244 100 172 97 146 335 474 857 $ 1.741 126 731 85 S 646 In their 2019 report, he found a similar table: (in millions) 2020 2021 2022 2023 2024 Thereafter Total lease payments Less imputed interest Total lease obligations Less current obligations Long-term lease obligations Operating leases Finance leases 392 S 107 257 102 141 98 113 94 92 90 661 230 1.656 $ 721 (325) (94) 1.331 627 (353) (85) 978 $ 542 Darrell immediately decides to include these two charts in his report. They demonstrated the Off-Balance- Sheet reporting of the lease before ASU 842 and the impact of the new regulation. Part III Assignment 1. Explain the similarities and differences between these two charts. 2. What is the implicit interest rate Southwest uses when they calculate their lease obligations? 3. In table 1, if all the operating leases were to be recognized using ASU 842, how much liabilities would Southwest recognize? 4. Write a one-year business memo to summarize your finding. AN AIRLINE COMPANY After a couple of sleepless nights, Darrell finally felt like he had some solid understanding of ASU 842. To see it in action, however, is an entirely different story. Darrell has enough experience in reading financial statements to know that he still has a lot to do. In the past, when facing a daunting task, Darrell always finds it helpful to break down the task into manageable pieces and start small. So instead of diving into how ASU 842 affected the whole airline industry, Darrell decided to investigate the issue on a much smaller scale. Southwest Airlines is one company he heard people mention in meetings. He thinks it worth a look into this company's financial statements to see what role leases play in this company Being an accounting major who has worked as a financial analyst in the past, Darrell never felt comfortable writing any report without some numbers. All the policy and regulation thoughts made him dizzy. Even though he has finished the major part of the report on what ASU 342 is and how airline company has been reporting differently according to ASU 842, he wants to add some quantitative analysis. Based on his experience, Darrell knows a company reports aggregated information in their financial statements but reveals a lot more details in the notes. So, he started to pou through Southwest's notes to their financial statements and focused primarily on lease-related charts. He found something quite fascinating. In Southwest 2018 amual report, he found the following table: (in millions) 2019 2020 2021 2022 2023 Thereafter Total minimum lease payments Less amount representing interest Present value of minimum lease payments (a) Less current portion Long-term portion Capital Operating leases leases 111 S 348 109 357 105 244 100 172 97 146 335 474 857 $ 1.741 126 731 85 S 646 In their 2019 report, he found a similar table: (in millions) 2020 2021 2022 2023 2024 Thereafter Total lease payments Less imputed interest Total lease obligations Less current obligations Long-term lease obligations Operating leases Finance leases 392 S 107 257 102 141 98 113 94 92 90 661 230 1.656 $ 721 (325) (94) 1.331 627 (353) (85) 978 $ 542 Darrell immediately decides to include these two charts in his report. They demonstrated the Off-Balance- Sheet reporting of the lease before ASU 842 and the impact of the new regulation. Part III Assignment 1. Explain the similarities and differences between these two charts. 2. What is the implicit interest rate Southwest uses when they calculate their lease obligations? 3. In table 1, if all the operating leases were to be recognized using ASU 842, how much liabilities would Southwest recognize? 4. Write a one-year business memo to summarize your finding