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Staples Inc. reports the following footnote relating to its operating leases in its 10-K report for the 2015 fiscal year ended January 30, 2016
Staples Inc. reports the following footnote relating to its operating leases in its 10-K report for the 2015 fiscal year ended January 30, 2016 ($ thousands). Future minimum lease commitments due for retail, distribution, fulfillment and support facilities (including restructured facilities) and equipment leases under non-cancelable operating leases are as follows (in millions): Fiscal Year Total 2016.. 2017 2018. 2019. 2020 Thereafter $2,662 $0 685 563 230 443 424 317 a. What dollar adjustment(s) might we consider to Staples' balance sheet and income statement given this information and assuming that Staples intermediate-term borrowing rate is 8% and rounding the remaining lease life to the nearest whole year? Explain. b. Would the adjustment from part a make a substantial difference to Staples' total liabilities? (Staples reported total assets of nearly $10,172 million and total liabilities of nearly $4,788 million for fiscal 2015.)
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a The adjustment to Staples balance sheet would be to add the present value of the future minimum le...Get Instant Access to Expert-Tailored Solutions
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