Reyes Corp. disclosed the following lease information in its 2016 annual report related to its leasing activities (in millions). Capital Leases Operating Leases 2017 $ 307 $ 2,471 2018 286 2,302 2019 262 1,202 2020 251 980 2021 116 830 Thereafter 703 9,130 Total 1,925 $16,915 Amount representing interest (754) Present value of net minimum lease payments $ 1,171 What effect does the failure to capitalize operating leases have on Reyes Corp.s balance sheet? Over the life of the lease, what effect does this classification have on net income? Calculate the lease-related liabilities that are potentially missing from Reyess 2016 balance sheet. Assume a discount rate of 12% and round the remaining lease life to the nearest whole year.