1. Johnny Jim Corporations 2019 balance sheet has no funded, long-term debt on the balance sheet. However, there are operating leases payments that must be made in the future as follows:

2018 47,116

2019 43,449

2020 41,315

2021 37,383

2022 32,168

Thereafter 87,582 (assume this is 30,000/30,000/27,582 in 2023/2024/2025)

Calculate an adjustment you would make (assuming a 5% interest rate) to reflect the amount of balance sheet debt these operating leases represent.