Home depot as of February 2017 ( fiscal 2016 year end ) the company operated 2,256 stores , many which were leased. The foonotes below show furure lease payments approximately ( in millions )

Fiscal year	Capital Lease	operating Lease
2017	112	856
2018	107	807
2019	99	747
2020	97	656
2021	93	582
Therafter	797	4560
	1305
less imputed interest	813

492

Thereafter 797 1,305 813 492 4,560 Less imputed interest Less current installment Long-term capital lease obligation, excluding current installments 459 The average life of operating leases was 15 years, implying that the average lease payment in years sik to fifteen is $456 (million) per year. The company typically borrows at a rate of 5%. L. From the perspective of the CEO of Home Depot, what are the pros and cons of using operating leases to finance new stores, rather than purchasing the stores outright? 2. What is the liability for Home Depot for capital leases at February 3, 2017? 3. Estimate the additional lease asset and liability for Home Depot on February 3, 2017 if accounting rules changed so that Home Depot was required to report its operating leases as capital leases. Show the entry to record the asset and liability on the books on February 3, 2017. Please record any entries related to these leases that will be made during the year ended February 3, 2018. 4. What impact will moving from an operating to a capital lease have on ROA? Thereafter 797 1,305 813 492 4,560 Less imputed interest Less current installment Long-term capital lease obligation, excluding current installments 459 The average life of operating leases was 15 years, implying that the average lease payment in years sik to fifteen is $456 (million) per year. The company typically borrows at a rate of 5%. L. From the perspective of the CEO of Home Depot, what are the pros and cons of using operating leases to finance new stores, rather than purchasing the stores outright? 2. What is the liability for Home Depot for capital leases at February 3, 2017? 3. Estimate the additional lease asset and liability for Home Depot on February 3, 2017 if accounting rules changed so that Home Depot was required to report its operating leases as capital leases. Show the entry to record the asset and liability on the books on February 3, 2017. Please record any entries related to these leases that will be made during the year ended February 3, 2018. 4. What impact will moving from an operating to a capital lease have on ROA