The following summary data are from the May 31, 2004, balance sheet of FedEx. All numbers are in millions.Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,970Property, plant, and equipment (net) . . . . . . . . . . . . . . . . . . . . 9,037Other long-term assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,127Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,134Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,732Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,837Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,529Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,098Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,036Total sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,710A summary of future minimum lease payments under capital leases and non-cancelable operating leases (principally aircraft, retail locations and facilities) with an initial or remaining term in excess of 1 year at May 31, 2004, is as follows (in millions):Instructions:Compute the following ratio values.1. Debt ratio (Total liabilities/Total assets).2. Debt ratio assuming that FedEx’s operating leases are accounted for as capital leases.3. Asset turnover (Sales/Total assets).4. Asset turnover assuming that FedEx’s operating leases are accounted for as capitalleases.
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The following summary data are from the May 31 2004



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