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Treat that amount as if it is a capital lease obligation, which means that your total assets and total long-term liabilities will increase by that

Treat that amount as if it is a capital lease obligation, which means that your total assets and total long-term liabilities will increase by that amount.

$158 is the capital lease obligation.

Long-term debt/ Total equity = 2,314 / 1,533 = 1.5 . Long term debt to equity ratio

Total Liabilities/ Stockholders equity 6,305/ 1,525= 4.13 Total debt to equity ratio

Now you recalculate the total debt to equity ratio and the long-term debt to equity ratio based on the newly calculated long-term and hence total liabilities.

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