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Required information Target Case (Static) LO5-3,5-8, 5-10 [The following information applies to the questions displayed below] Target Corporation prepares its financial statements according to U.S.
Required information Target Case (Static) LO5-3,5-8, 5-10 [The following information applies to the questions displayed below] 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.com). Target leases most of its facilities. Target Case (Static) Part 3 3. New lease accounting guidance will require companies to report a liability for operating leases at present value as well as for capital leases (now called finance leases). If Target had used the new lease accounting guidance in its fiscal 2017 financial statements, what would be the amount reported as a liability for operating leases? Hint: Assume the payments "after 2022" are to be paid evenly over a 16 years period and all payments are at the end of years indicated. Target indicates elsewhere in its financial statements that 6% is an appropriate discount rate for its leases. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided. Enter your answers in millions (i.e.,10,00,000 should be entered as 10). Round your answer to the nearest whole number.) Present Value of the Lease Prav 2 of 2 Next
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