Capital Leases, n.d.). These two have significant impacts on the balance sheet and income statement of the firm. In the balance sheet, the operating lease has no effect while the capital lease shows interest receivable and capital asset with depreciation on the asset side and debt on the liability. In the income statement, both the operating lease and capital lease records an operating expense; the latter also shows interest as

General Electric Company is one of the most acknowledged companies across the world. The company's center of operations is situated in Boston. In particular, the manufacturing company has various business operations in different segments. These include oil and gas, power and water, aviation and transportation. This shows the company's versatility in manufacturing as it ranges from the engineering industry to automotive industry. The company's prevailing revenue generated lies in the

New capacity would have to be bought or built when capacity runs out or production would have to be cut back on one of the product lines, leading to a loss in cash flows that would have been generated by the lost sales runs. Thus, Blast would result in incremental cash flows for facilities and these should be included in cash outflow calculations. However, the case states that Blast will

Financial Analysis Introduction ( a ) A real option is just that -- the option to do something, if a particular situation arises. The principle is the same as for a financial option. The difference is that real options pertain to physical things -- usually pieces of equipment, real estate or other such assets (Investopedia, 2015). An example of a real option would be when you sign a lease on a piece

The questions of buying or leasing have been the concern of finance managers and experts, favoring a lease over a purchase, Leasing tends to cost the company a bit more, since the effective interest rate is usually higher. On the other hand, it is often easier to enter into a lease than to obtain an equipment loan from a bank (J. Schiff, 2005)" The idea that leasing always costs more isn't true,

Competition Bikes Budgetary Analysis Budgetary Areas Raising Concern in the Budget Plan. Competition Bikes, Inc. - Year 8 Budget Concerns The master budget for year 8 of Competition Bikes, Inc. has all of the required schedules and data. The data is generally sound and there are but a few concerns with regards to its presentation and content. Concerns -- Lack of Quarterly Activity Reporting The merger committee's first concern is that all of the reported