2014 Annual report Financial Highlights as of December 31, 2014 Consolidated Revenues Cash Flows from Operating Activities (billions) Reported...

On the attached annual report for Verizon corporation locate the footnote related to leasing activities.

a) What is the total amount of operating and capital leases reported on the balance sheet?

b) Estimate the present value of Verizon’s operating leases (use the quick-and-dirty method from class).

c) How would the capitalization of these operating leases affect the financial statements as well as any ratio analysis you might perform.