Compare the effects of operating leases as compared to capitalized leases, in the first year of a lease, on the following items listed. Explain your answer.
1. EBIT
2. Net income
3. Return on assets (levered)
$\text { Levered } R O A=\frac{N I}{\text { Average Total Assets }}$

4. Cash flow from operations
5. Current ratio

Question

Compare the effects of operating leases as compared to capitalized leases, in the first year of a lease, on the following items listed. Explain your answer.
1. EBIT
2. Net income
3. Return on assets (levered)
$\text { Levered } R O A=\frac{N I}{\text { Average Total Assets }}$

4. Cash flow from operations
5. Current ratio

Quizplus · Accepted Answer

The Answer of Compare the effects of operating leases as compared to capitalized leases, in the first year of a lease, on the following items listed. Explain your answer.
1. EBIT
2. Net income
3. Return on assets (levered)
$\text { Levered } R O A=\frac{N I}{\text { Average Total Assets }}$

4. Cash flow from operations
5. Current ratio

Compare the Effects of Operating Leases as Compared to Capitalized Levered ROA=NI Average Total Assets \text { Levered } R O A=\frac{N I}{\text { Average Total Assets }} Levered ROA= Average Total Assets NI​

Compare the Effects of Operating Leases as Compared to Capitalized $\text { Levered } R O A=\frac{N I}{\text { Average Total Assets }}$