Posted 1/5/2016 08:20 (#5012155 - in reply to #5012002) Subject: RE: Working Capital 2016
SESD
The lease can make a financial statement look better because all you are obligated to is the annual lease payment. There is no outstanding term debt to service and no equity gain from the lease payment. However, the annual lease payment is listed as a current liability that needs to be serviced within 12 months. Every bank I have worked with has done it this way.