1- NOTE: This problem requires present value information. Charter Corp. manufactures office equipment and supplies throughout the U.S. The companyT owns property, plant, and equipment and also enters into operating leases for certain facilities. The company's tax rate is 35%. Listed below is selected nancial data for Charter and the company's operating lease disclosure. 2312 2311 2313 Property, Plant, 3: Equipment [net] $123,454 $132,339 $155,333 Total Assets 515,335 424,545 413,253 Common Shareholders Equity 332,254 293,534 239,455 Sales $933,253 $333,935 Cost of Goods Sold 393,352 533,923 Depreciation Expense Interest Expense 34,2 53 25,339 Net Income 124,531 31,325 Charter Corp. peratirtg Lease Disclosure (amounts in thousands] Operating Lease Commitments at the end of 2312 Year Reported Lease Commitments 2313 3 25,239 2314 $ 52,333 2315 $ 23,924 2313 $ 43,233 2312 $ 45,3 23 Beyond 231?' $212,333 As an analyst you wish to restate Charter's operating leases into capital leases. Required: a. Using the information in the operating lease disclosure, and assuming that Charter has an incremental borrowing rate for secured debt of 3%, restate the operating leases into capital leases. b. Estimate the average life of the operating leases. c. Calculate Charter's fixed asset turnover ratio as reported