Just 19-2, in excel, please show formulas

19-1 Balance Sheet Errects Reynolds Construction (RC) needs a piece of equipment that costs $200. RC can either lease the equipment or borrow $200 from a local bank and buy the equipment. Reynolds's balance sheet prior to the acquisition of the equip- oment is as follows: Current assets $300 Debt $400 Net fixed assets 500 Equity 400 $800 Total assets $800 Total claims TO a. (1) What is RC's current debt ratio? (2) What would be the company's debt ratio if it purchased the equipment? (3) What would be the debt ratio if the equipment were leased and the 0000 lease not capitalized? (4) What would be the debt ratio if the equipment were leased and the lease were capitalized? Assume that the present value of the lease payments is equal to the cost of the equipment. b. Would the company's financial risk be different under the leasing and purchasing alternatives? 19-2 Lease versus Buy Consider the data in Problem 19-1. Assume that RC's tax rate is 40% and that the equipment's depreciation would be $100 per year. If the company leased the asset on a 2-year lease, the payment would be $110 at the begin ning of each year. If RC borrowed and bought, the bank would charge 10% interest on the loan. In either case, the equipment is worth nothing after 2 years and will be discarded. Should RC lease or buy the equipment? 19-1 Balance Sheet Errects Reynolds Construction (RC) needs a piece of equipment that costs $200. RC can either lease the equipment or borrow $200 from a local bank and buy the equipment. Reynolds's balance sheet prior to the acquisition of the equip- oment is as follows: Current assets $300 Debt $400 Net fixed assets 500 Equity 400 $800 Total assets $800 Total claims TO a. (1) What is RC's current debt ratio? (2) What would be the company's debt ratio if it purchased the equipment? (3) What would be the debt ratio if the equipment were leased and the 0000 lease not capitalized? (4) What would be the debt ratio if the equipment were leased and the lease were capitalized? Assume that the present value of the lease payments is equal to the cost of the equipment. b. Would the company's financial risk be different under the leasing and purchasing alternatives? 19-2 Lease versus Buy Consider the data in Problem 19-1. Assume that RC's tax rate is 40% and that the equipment's depreciation would be $100 per year. If the company leased the asset on a 2-year lease, the payment would be $110 at the begin ning of each year. If RC borrowed and bought, the bank would charge 10% interest on the loan. In either case, the equipment is worth nothing after 2 years and will be discarded. Should RC lease or buy the equipment