Can someone help me here… 1) Why is Working Capital lower under LIFO (rising prices) and why? Answer: lower Inventory value = lower Current Asset = lower AC - PC (Working Capital) ? 2) Why is Working Capital lower udner a Capital Lease? Answer: ???
the current lease payment is added to current liabilities making the working capital lower.
Will it always be lower considering the fact that lease expense continues to go down. At one point it will be lower than operating lease expense too
I take it back… Operating lease is an off balance sheet activity
and the asset under capital lease is added to fixed assets (non current)