Requirement 8 (Additional): Show the journal entries that Target will make in fiscal 2019 to record the payments on operating and finance leases existing at February 2, 2019. Use the account names shown in Target's financial statements.

Requirement 5: Explain how the fiscal 2018 income statement would change if the operating leases were treated as finance leases

Requirement 6: Explain how the fiscal 2018 statement of cash flows would change if the operating leases were treated as finance leases

Requirement 7: Explain how the February 2, 2019, balance sheet would change if the operating leases were treated as finance leases

February 2, 2019 February 3, 2018 14.2 Lease Term and Discount Rate Weighted average remaining lease term (years) Operating leases Finance leases Weighted average discount rate Operating leases Finance leases 15.2 15.4 15.4 3.91% 4.64% 3.88% 4.64% 2018 2017 2016 Other Information (millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases Operating cash flows from finance leases Financing cash flows from finance leases $231 45 80 $198 42 45 $188 36 94 Target adopted the new leasing standard for the year ended February 2, 2019, using the modified retrospective approach outlined in ASC Topic 842. All questions relate to the year ended February 2, 2019 (fiscal 2018) unless stated otherwise. The supplemental information for the fiscal 2018 statement of cash flows reports that $130 of leased assets were obtained in exchange for new finance lease liabilities, and $246 of leased assets were obtained in exchange for new operating lease liabilities. Presented below is information from Target Corporation's Form 10-K, Note 18, for the year ended February 2, 2019. February 2, February 3, Leases (millions) Classification 2019 2018 Assets Operating Operating Lease Assets $1,965 $1,884 Finance Buildings and Improvements, net of 872 Accumulated Depreciation Total leased assets $2.837 $2,720 836 $ 166 $ 148 53 80 Liabilities Current Operating Accrued and Other Current Liabilities Finance Current Portion of Long-term Debt and Other Borrowings Noncurrent Operating Noncurrent Operating Lease Liabilities Finance Long-term Debt and Other Borrowings Total lease liabilities Lease Cost (millions) Classification Operating lease cost) SG&A Expenses Finance lease cost Amortization of leased assets Depreciation and Amortization) Interest on lease liabilities Net Interest Expense Sublease income Other Revenue Net lease cost 2,004 968 $3.191 1.924 885 $3,037 2018 $251 2017 $221 2016 $199 65 42 (11) $347 63 42 (9) $317 87 36 (7) $315 Maturity of Lease Liabilities (millions) Operating Leases/a) Finance Leases) Total February 2, 2019 February 3, 2018 14.2 Lease Term and Discount Rate Weighted average remaining lease term (years) Operating leases Finance leases Weighted average discount rate Operating leases Finance leases 15.2 15.4 15.4 3.91% 4.64% 3.88% 4.64% 2018 2017 2016 Other Information (millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases Operating cash flows from finance leases Financing cash flows from finance leases $231 45 80 $198 42 45 $188 36 94