Problem:
Your company needs a new asset costing $500,000.
1. Discuss pros and cons of options for getting the resources (cash, or lease) to get this asset. For each option, discuss the impact on the financial statements, highlight an impact on at least two financial ratios and discuss the impact on the capital structure.
2. Pick a method for getting the funding and explain why you picked it.
3. Prepare all the journal entries associated with getting the capital and the asset.