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Ellis The Ellis Corporation has heavy lease commitments. Prior to SFAS No. 13, it merely footnoted lease obligations in the balance sheet, which appeared as
Ellis
The Ellis Corporation has heavy lease commitments. Prior to SFAS No. 13, it merely footnoted lease obligations in the balance sheet, which appeared as follows: Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods In $ millions In $ millions S 80 Current liabilities $ 35 30 $ 65 95 $160 Current assets Fixed assets 80 Long-term liabilities Total liabilities Stockholders' equity S 160 Total assets T0 Total liabilities and stockholders' equity The footnotes stated that the company had $26 million in annual capital lease obligations for the next 25 years. a. Discount these annual lease obligations back to the present at a 8 percent discount rate. (Do not round intermediate calculations. Round your answer to the nearest million. Input your answer in millions of dollars (e.g., $6,100,000 should be input as "6").) PV of lease obligations millionStep by Step Solution
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