24)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 $ millionsIn $ millions Current assets$ 70 Current liabilities$ 25 Fixed assets70 Long-term liabilities40 Total liabilities$ 65 Stockholders’ equity75 Total assets$ 140 Total liabilities and stockholders’ equity$ 140 The footnotes stated that the company had $24 million in annual capital lease obligations for the next 15 years. a.Discount these annual lease obligations back to the present at a 6 percent discount rate. (Do not round intermediate calculations. Round your answer to the nearest million. Input your answer in millions of dollars (e.g., $6,100,000 should be input as “6”).) PV of lease obligations$ million 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$ Stockholders’ equity Total assets$ Total liabilities and Stockholders’ equity$ 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 % e.In an efficient capital market environment, should the consequences of SFAS No. 13, as viewed in the answers to parts c and d, change stock prices and credit ratings?YesNo