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.

In $ millions			In $ millions
Current assets	$	55	Current liabilities	$	10
Fixed assets		55	Long-term liabilities		35
			Total liabilities	$	45
			Stockholders' equity		65
Total assets	$	110	Total liabilities and stockholders' equity	$	110

The footnotes stated that the company had $21 million in annual capital lease obligations for the next 20 years.

a. Discount these annual lease obligations back to the present at a 10 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:

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").)

Balance Sheet (in $ millions)
Current assets		Current liabilities
Fixed assets		Long-term liabilities
Leased property under capital lease		Obligations under capital lease
		Total liabilities	$0
		Stockholders' equity
Total assets	$0	Total liabilities and Stockholders' equity	$0

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

Original		%
Revised		%

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

Original		%
Revised		%