A7. (Off-balance sheet financing-leases) Shown below are summarized financial information for a retail company.

Off-balance sheet financing leases Shown below are summarized financial information for a retail company. Current liabilities Long-term debt Other noncurrent liabilities Shareholders' equity Total . $2,150 $500 $1,000 $4 400 Note $8,050 Note-this also equals total assets. All of this company's stores are leased. The company treated the leases as operating leases. If it had treated the leases as capital leases, the present value of the lease obligations would have been $3,000. Assume that of this $3,000, about $200 was a current liability and the rest is long term. A. Compute the ratio of liabilities to equity using the company's financial data, as shown in its balance sheet. B. Compute the ratio of long-term debt to equity using the company's data as shown on its balance sheet. C. Assume the company had treated the leases as capital leases. Compute the ratio of liabilities to equity D. Assume the company treated the leases as capital leases, and considered the obligations to be debt. Compute the ratio of long- term debt to equity. shown in the company's financial statements assets of $3,000? E. Assume the company had net income for the year of $805. Compute the ratio of income to total assets, using the data as F. What would be the ratio of net income to total assets if the company had capitalized the leases, and recognized additional