I want to know how $22.6 million was distributed or calculated in order to get the answers in the calculated threshold column of the first table? The information below table 3 are numbers that were provide with the problem.

b. Will those same financial ratios lead to violations under ASC 842, in FY 2016?

Yes, if the operating "right of use" assets and operating lease liabilities of

approximately $22.6 million are added to CTC's FY 2016 balance sheet, there will be

violations of two debt covenants under ASC 842 - the debt to equity ratio and the return

on assets - as seen in Table 3