Principles of Corporate Finance

Financial Leases

Example - cont
Greymore Bus Lines Balance Sheet without lease

Equivalent lease balance sheet

Greymore Bus Lines (figures in $1,000s)

BusAll other assets 100010 100450 Loan secured by busOther loans

Toital Assets 1100 1100550 EquityTotal liabilities

Greymore Bus Lines (figures in $1,000s)

BusAll other assets 100010 100450 Financial leaseOther loans

Toital Assets 1100 1100550 EquityTotal liabilities