direct financing vs sales type lease CFI CFO

[h21]

Can someone help me once and for all why sales type has lower CFI higher CFO?

 

[S2000magician]

Under a direct financing lease all of the lease payments are classified as interest income: 100% CFI.
Under a sales-type lease, the lease payments are part interest, part principal: part CFI, part CFO.

 

[h21]

THANK U!

 

[S2000magician]

You’re welcome.