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Johnny Jim Corporation’s 2019 balance sheet has no funded, long-term debt on the balance sheet.  However, there...

  1. Johnny Jim Corporation’s 2019 balance sheet has no funded, long-term debt on the balance sheet.  However, there are operating leases payments that must be made in the future as follows:   

         2018                 47,116

            2019                 43,449

            2020                 41,315

            2021                 37,383

      2022                 32,168

            Thereafter       87,582  (assume this is 30,000/30,000/27,582 in 2023/2024/2025)

Calculate an adjustment you would make (assuming a 5% interest rate) to reflect the amount of balance sheet debt these operating leases represent.        

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