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At year end, a company with significant off-Balance Sheet operating leases has total assets of $90,000,000, and total equity of $36,000,000. The notes to the financial statements disclose the following long-term lease obligations.

Complete the adjustment to capitalize these operating leases and compute their debt ratio before and after the adjustment.

Year Future Lease Obligation

20X1 3,000,000

20X2 3,000,000

20X3 2,000,000

20X4 2,000,000

20X5 1,000,000

20X6 and after 10,000,000

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91972844

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