The Ellis Corporation has heavy lease commitments. A new vice-president wants the lease obligations footnoted in...
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The Ellis Corporation has heavy lease commitments. A new vice-president wants the lease obligations footnoted in the balance sheet as follows: Use Appendix D Current assets Capital assets Total assets $55 55 $110 ELLIS CORPORATION (5 millions) Current liabilities Long-term liabilities. Total liabilities. Sharesholders' equity Total liabilities and equity $10 35 $45 65 $110 The footnotes would state that the company had $21 million in annual capital lease obligations over the next 20 years. Lease payments are payable at the end of the year. Check my a. Discount these annual lease obligations back to the present at a 10 percent discount rate. (Enter the answer in millions. Round "PV Factor" to 3 decimal places. Round the final answer to nearest whole million.) Annual lease obligations : million b. Construct a revised balance sheet that includes lease obligations, as in Table 16-6. (Enter the answers in millions. Round "PV Factor" to 3 decimal places. Round the final answers to nearest whole million.) The Ellis Corporation has heavy lease commitments. A new vice-president wants the lease obligations footnoted in the balance sheet as follows: Use Appendix D Current assets Capital assets Total assets $55 55 $110 ELLIS CORPORATION (5 millions) Current liabilities Long-term liabilities. Total liabilities. Sharesholders' equity Total liabilities and equity $10 35 $45 65 $110 The footnotes would state that the company had $21 million in annual capital lease obligations over the next 20 years. Lease payments are payable at the end of the year. Check my a. Discount these annual lease obligations back to the present at a 10 percent discount rate. (Enter the answer in millions. Round "PV Factor" to 3 decimal places. Round the final answer to nearest whole million.) Annual lease obligations : million b. Construct a revised balance sheet that includes lease obligations, as in Table 16-6. (Enter the answers in millions. Round "PV Factor" to 3 decimal places. Round the final answers to nearest whole million.)
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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