1.

GAP year Lease payment Discount factor Present value

a, 2009 1069 0.93 989.81 kp longterm debt, do b
2010 927 0.86 794.75
2011 712 0.79 565.21
2012 520 0.74 382.22
2013 386 0.68 262.71
After 2013 1080 1.75 631.41
(360*annuity factor, take back 5 year)
3626.11

b, Liabilities / Assets 0.42

Long term Debt/Capital 0

c, Liabilities / Assets 0.61

Long term Debt/Capital 0.38

d, Mọi chỉ số đều cao hơn nên Companies generally don’t like capital lease because

Capital lease -> increase leverage ratio

Harder to borrow money
Usually must pay high interest cost

Redo
a, GAP year Lease payment Discount factor PV
2009 1069 0.93 989.81
2010 927 0.86 794.75
2011 712 0.79 565.21
2012 520 0.74 382.22
2013 386 0.68 262.71
After 2013 1080 1.75 631.41

Total 3626.11
LB year Lease payment Discount factor PV
2009 478 0.93 442.59
2010 455 0.86 390.09
2011 416 0.79 330.23
2012 373 0.74 274.17
2013 341 0.68 232.08
After 2013 1334 2.25 751.77

Total 2420.93

GAP LB
b, Liabilities to Asset ratio 0.42 0.73
 LT debt to LT capital ratio 0.00 0.61

c, GAP LB
Liabilities to Asset ratio 0.61 0.80
LT debt to LT capital ratio 0.38 0.72

d, When leases are capitalized wih operating lease, an asset and a liability equal to PV of lease payments are recogn
Therefore, asset ratio and long-term capital ratio increase for both companies For GAP, asset ratio inc
For LB, asset ratio incr
Companies generally don’t like capital lease because

Capital lease -> increase leverage ratio

Harder to borrow money
Usually must pay high interest cost
kp longterm debt, do bắt đầu từ Jan 31 2009, chưa đủ 1 năm -> short-term debt, nên phải trừ đi

2.254178
ase payments are recognized.
For GAP, asset ratio increases 0.19% from 0.42% to 0.61%, and LT capital ratio increases 0.38%
For LB, asset ratio increases 0.07% from 0.73% to 0.80%, and LT capital ratio increases 0.11% from 0.61% to 0.72%