Which of the following statements is incorrect?
A) Total cash flow will be higher using an operating lease as compared to a financial lease.
B) Net income will be higher in the early years using an operating lease and lower in the later years as compared to a financial lease.
C) Cash flow from operations will be lower using an operating lease, but cash flow from financing will be higher as compared to a financial lease.
D) Current ratios will be higher, debt and leverage ratios will be higher, asset turnover and profitability ratios will be lower for operating leases as compared to a financial lease.
Correct Answer:
Verified
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