This illustration shows the content of the build.gradle file in the Android Studio code editor window:

apply plugin: 'com.android.application'
repositories{
    flatDir{
        dirs rootDir.getAbsolutePath() + "/../../lib"
    }
}
android {}
dependencies {
    compile fileTree(dir: 'libs', include: ['*.jar'])
    compile fileTree(dir: 'libs', include: ['*.jar'])
    compile(name: 'device-library', ext: 'aar') {
        transitive=true
    }
    compile 'com.android.support:appcompat-v7:23.0.0'
    compile 'com.android.support:appcompat-v7:23.3.0'
}

The repositories closure is enclosed in a box. An arrow points to the dependencies closure. 

The following entry of the dependencies closure is enclosed in a box:

compile(name: 'device-library', ext: 'aar') {
        transitive=true
    }