Off-Balance Sheet Financing
During 2016, Thomas Company reported the following unconditional purchase obligations in its footnotes:
Year ending December 31, 2016
(in thousands $)
Less than one year
If Thomas’ total assets equal $540,000 and its total stockholders’ equity equals $340,000, how would its debt-to-equity ratio change if it reported the unconditional purchase obligations in the balance sheet? (Ignore discounting.)
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