Discuss CVS Caremark Leases by Edward Ketz op ed
Not what you're looking for?
What are your thoughts about the Op-Ed article by J. Edward Ketz?
Found at: http://accounting.smartpros.com/x67548.xml
Purchase this Solution
Solution Summary
Your discussion is 316 words and explains how the off balance sheet financing fools some readers but not the more sophisticated ones. My opinion is that the author is a bit overly dramatic and I explain why.
Solution Preview
The underlying implication of the author is that CVS is intentionally "structuring" leases to avoid reporting the assets and the liabilities. Somehow this permits CVS to trick the readers of the financial statement into thinking that their obligations are smaller (liability for lease payments are reported in the footnotes but not on the financial statements). CVS's intent is not clear just looking at their leases so the author is making a presumption.
I personally think ...
Education
- BSc, University of Virginia
- MSc, University of Virginia
- PhD, Georgia State University
Recent Feedback
- "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
- "Thank, this is more clear to me now."
- "Awesome job! "
- "ty"
- "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Operations Management
This quiz tests a student's knowledge about Operations Management
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.