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Capital Equipment Leasing

Capital equipment leasing may be used by businesses and other users who lack the means to purchase equipment. Equipment leasing offers tax and cash flow benefits, as it allows companies to acquire equipment without the initial outlay of cash

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If the consumption is greater than current income how can be sustained?

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When consumption is greater than current income, the situation in itself is non-sustainable. However, if the situation is considered temporary, financing is usually used to sustain the business until they are able to generate the cash flows necessary to cover consumption.

What is six figures equal too money wise?

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6 figures is anything with 6 numbers in it. For example $100,000 is 6 figures so $100,000-$999,999 are all 6 figures.

How do you perfect a ucc-1 financing statement?

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I have been using and studying the UCC for more than 15 years now. I am a filed Secured Party Creditor in the STATE OF MICHIGAN, allot of laws have changed since I perfected mine years ago. But please feel free to reach out to me to discuss that matter in further detail if you still wish to pursue this avenue?

What is Definition of over and back?

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In Basketball, once an offensive player passes the half court line with both feet and the ball, the team may not take the ball into the back court unless it is deflected (last touched) by the defense. A player who has just crossed the line with the ball and brings it back into the backcourt is not "over & back". They have not yet established the ball in the front court, therefore cannot have a backcourt violation

How do you record Obligations under capital lease contracts?

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When you book the capital lease, record the asset at its fair market value or the present value of minimum lease payments, whichever is less. The capital lease obligation is recorded at the same amount. Minimum lease payments include all rental payments required during the term of the lease plus any residual value guaranteed by the lessee. They also include any payment the lessee must make for not renewing or extending the lease, including a requirement to purchase the asset. They do not include any guarantee of the lessor's debt by the lessee, contingent rentals, or any penalty for which the term of the lease has been extended. They also do not include the portion of the rent payments which represent executory costs, such as insurance, taxes, and maintenance, and any related profit. Sources: SFAS No. 13; RIA Checkpoint

Why is trade credit generally the largest source of short term credit for small firms?

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Well, trade credit would be credit extended by suppliers (I guess). So, if in fact it is the largest source of short term credit, it would be because it is easier to get credit from people that want to sell you something than from someone that lends money (the potential profit warrants the risk).

How do you calculate the capital lease obligation?

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When you book the capital lease, record the asset at its fair market value or the present value of minimum lease payments, whichever is less. The capital lease obligation is recorded at the same amount. Minimum lease payments include all rental payments required during the term of the lease plus any residual value guaranteed by the lessee. They also include any payment the lessee must make for not renewing or extending the lease, including a requirement to purchase the asset. They do not include any guarantee of the lessor's debt by the lessee, contingent rentals, or any penalty for which the term of the lease has been extended. They also do not include the portion of the rent payments which represent executory costs, such as insurance, taxes, and maintenance, and any related profit. The interest rate used to calculate the present value of the minimum lease payments is normally your incremental borrowing rate (the interest rate you would pay to borrow a similar amount of money for a similar length of time), unless you know the lessor's implicit interest rate for the lease and that is lower than your incremental borrowing rate. Sources: SFAS No. 13; RIA Checkpoint

Role of finance department in a company?

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Functions of finance department are:

  • Book keeping

• Obtaining and managing finance

•Budget control

•Accounts Payable

•Accounts receivable

•Credit regulations and policies

•Bills processing /Claim Processing

What is Prince Edward Islands Religions?

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Predominately Catholic, and Protestant.

How many people work for the US post office?

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It employed 790,000 personnel in 2003, divided into offices, processing centers, and actual post offices.

From wikipedia:

http://en.wikipedia.org/wiki/United_States_Post_Office

How long did it take to get things back to normal after cyclone Katrina?

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it was a hurricane - not a cyclone but i dont know how long it took it was a hurricane - not a cyclone but i dont know how long it took

What is televideo conferencing?

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It is when people who can't meet in the one location will use cameras and TVs to see each other and have their meeting, although they could be anywhere.

What is a Purchase order system?

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It is a system that helps control and manage the purchasing and receiving of stock for a business and also preventing unauthorized employee or other purchases.

What is the role of the entrepreneur in managing an enterprise?

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The role of an entrepreneur is starting the organization. Entrepreneurs are business innovators who come up with ideas and set them in motion.