The Ellis Corporation has heavy lease commitments. Prior toSFAS No. 13, it merely footnoted lease obligations in thebalance sheet, which appeared as follows: Use Appendix D for anapproximate answer but calculate your final answer using theformula and financial calculator methods.  

In $ millions			In $ millions
Current assets	$	90	Current liabilities	$	30
Fixed assets		90	Long-term liabilities		55
			Total liabilities	$	85
			Stockholders' equity		95
Total assets	$	180	Total liabilities and stockholders' equity	$	180

  
The footnotes stated that the company had $28 million in annualcapital lease obligations for the next 15 years.

a. Discount these annual lease obligations back tothe present at a 10 percent discount rate. (Do not roundintermediate calculations. Round your answer to the nearestmillion. Input your answer in millions of dollars (e.g., $6,100,000should be input as "6").)
  

   

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

   

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

   

d. Compute the total debt to total equity ratiofor the original and revised balance sheets. (Input youranswers as a percent rounded to 2 decimal places.)