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.

In Millions In Millions

Current Assets 80 Current Liabilities 40

Fixed Assets 80 Long Term Liabilities 30

Total Assets 160 Total liabilities 70

Stockholders' equity 90

Total liabilities and stockholders'

equity 160

The footnotes stated that the company had 16 million in annual capital lease obligations for the next 15 years.

a) Discount these annual lease obligations back to the presnt at a 12 percent discount rat.(Enter your answers in millions rounded to nerarest whole number. Round PV Factor to 3 decimal places.)

b) Construst a revised balance sheet that includes lease obligations.(Enter your answers in millions rounded to nerarest whole number. Round PV Factor to 3 decimal places.)

c) Compute total debt to total assets on the orginial and revised balance sheets. (Round your answer to 1 decimal place.)

d) Compute total debt to equity on the orginial and revised balance sheets. (Round your answer to 1 decimal place.)