The Ellis Corporation has heavy lease commitments. Prior to SFAS No. 13, it merely footnoted lease obligations in the balance sheet, which appeared as follows: Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Current Assets 75 Current Liabilities 35

Fixed Assets 75 Long Term Liabilities 20

Total Liabilitites 55

Stockholders equity 95

Total Assets 150 Total liabilities & stockholders equity 150

The footnotes stated that the company had $15 million in annual capital lease obligations for the next 15 years.

a. Discount these annual lease obligations back to the present at a 11 percent discount rate. (Do not round intermediate calculations. Round your answer to the nearest million. Input your answer in millions of dollars (e.g., $6,100,000 should be input as "6").)

PV of Lease Obligations ______________ millions

b. Construct a revised balance sheet that includes lease obligations. (Do not round intermediate calculations. Round your answers to the nearest million. Input your answer in millions of dollars (e.g., $6,100,000 should be input as "6").)

c. Compute the total debt to total asset ratio and total equity ratio for the original and revised balance sheets.(Input your answers as a percent rounded to 2 decimal places.

Asset Ratio Original ____________% Revised _______________%

Equity Ratio Original _____________% Revised ________________%