Create an Excel sheet to organize the answers to the following problem:

A company currently has $600 million of assets financed with $280 million of debt, and Net income last year was $22 million. Calculate the company's return on assets ratio and debt/equity ratio under the following assumptions or changes:

1. No changes in above.

2. Assuming the company had leased $30 million of its assets "off the balance sheet."

3. Assuming the company had leased $70 million of its assets "off the balance sheet."

4. Assuming the company had leased $95 million of its assets "off the balance sheet."

Based on a review of your calculations for the financial ratios above, explain why a firm might want to engage in "off balance sheet" financing.