What are your observations regarding the solvency of company

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Select a company that reports a significant number of operating leases. Calculate the company's present debt-to-equity ratio. Then read the Note disclosures associated with the present value of the minimum lease payments as reported in the company's most recent 10K. Adjust the balance sheet reporting for the disclosures, reporting these as if treated as capital leases. Then recalculate the debt-to-equity ratio for the company. What are your observations regarding the solvency of the company if it were to modify its financial statements to reflect operating leases as capital leases? Remember to adjust depreciation and related accounts as required to affect appropriate presentation.

Reference no: EM131514376

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