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Chemy The Ellis Corporation has heavy lease commitments. A new vice-president wants the lease obligations footnoted in the balance sheet as follows: Use Appendix D

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Chemy The Ellis Corporation has heavy lease commitments. A new vice-president wants the lease obligations footnoted in the balance sheet as follows: Use Appendix D Current assets Capital assets ELLIS CORPORATION ($ millions) 355 Current liabilities 55 Long-term liabilities $10 35 Total liabilities Shareholders' equity $45 65 Total assets $110 Total liabilities and equity $110 The footnotes would state that the company had $21 million in annual capital lease obligations over the next 20 years Lease payments are payable at the end of the year a. Discount these annual lease obligations back to the present at a 10 percent discount rate (Enter the answer in millions. Round "PV Factor" to 3 decimal places. Round the final answer to nearest whole million) Annual lease obligations $ million b. Construct a revised balance sheet that includes lease obligations, as in Table 16-6. (Enter the answers in millions. Round "PV Factor" to 3 decimal places. Round the final answers to nearest whole million.) Chemy The Ellis Corporation has heavy lease commitments. A new vice-president wants the lease obligations footnoted in the balance sheet as follows: Use Appendix D Current assets Capital assets ELLIS CORPORATION ($ millions) 355 Current liabilities 55 Long-term liabilities $10 35 Total liabilities Shareholders' equity $45 65 Total assets $110 Total liabilities and equity $110 The footnotes would state that the company had $21 million in annual capital lease obligations over the next 20 years Lease payments are payable at the end of the year a. Discount these annual lease obligations back to the present at a 10 percent discount rate (Enter the answer in millions. Round "PV Factor" to 3 decimal places. Round the final answer to nearest whole million) Annual lease obligations $ million b. Construct a revised balance sheet that includes lease obligations, as in Table 16-6. (Enter the answers in millions. Round "PV Factor" to 3 decimal places. Round the final answers to nearest whole million.)

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