op and capital op – leads to rent expense on IS and that is it. boom capital – PV of MLP to get value that hits balance sheet LP is broken up into interest and principal pmt interest hits CFO and principal portions hits CFF OL leads to better ratios across the board except debt/equity total cash flow same for both OL and CL at end of day, in the interim, know that CL – - > lower net, higher CFO OL ----> higher net (in early years) lower CFO
daj224 Wrote: ------------------------------------------------------- > op and capital > > op – leads to rent expense on IS and that is it. > boom > > > capital – PV of MLP to get value that hits > balance sheet > > LP is broken up into interest and principal pmt > > interest hits CFO and principal portions hits CFF > FORGOT THAT DEPRECIATION HITS THE P AND L > > > OL leads to better ratios across the board except > debt/equity > > total cash flow same for both OL and CL at end of > day, in the interim, know that > > CL – - > lower net, higher CFO > > OL ----> higher net (in early years) lower CFO