If a firm has substantial capital or financing leases, Financial Management

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If a firm has substantial capital or financing leases

If a firm has substantial capital or financing leases disclosed in the notes but not capitalized in the financial statements, then the times interest earned ratio will be overstated, the fixed charge ratio will be overstated, the debt ratio will be understated, the working capital will be understated.

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Financial Management: If a firm has substantial capital or financing leases

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Financial Management: If a firm has substantial capital or financing leases

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