A Supplier to a Company Would Be Most Interested in the

question 87

Multiple Choice

A supplier to a company would be most interested in the

• A)cash total debt coverage.
• B)price-earnings ratio.
• C)current ratio.
• D)earnings per share.

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Definitions:

After-Tax Lease Payments

Lease payments made by a business adjusted for the tax effects, reflecting the actual cash outflow for leasing after accounting for tax deductions.

NAL

Net Advantage to Leasing, which is a calculation to determine the financial benefits of leasing equipment versus purchasing it.

Synthetic Lease

A financing arrangement that classifies as an operating lease for accounting purposes but as a financing purchase for tax purposes, often used in real estate and equipment leases.

Tax-Oriented Lease

A leasing agreement structured to maximize tax benefits for the lessor, often by passing on tax advantages to the lessee in the form of lower lease payments.