Target Case (Static) [LO7-2, 7-5] [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 also is available under the Investor Relations link at the company's website (www.target.com). Target Case (Static) Part 2 Required: 1. What is Target's policy for designating investments as cash equivalents? 3. What is Target's policy with respect to accounting for merchandise returns?