How does total cash remain same under finance and operating lease?

[300hoursoverand]

Could some one provide an example of this? This is from the lessee’s perspective. Thanks a lot.

 

[40yoCFAcandidate]

If you go lease a fancy new BMW after you pass the Exam, you are going to make the same payment whether the dealer calls it a Finance Lease, Operating Lease, or a ham sandwich lease.
You will have equally less cash whether you think of it as a transportation expense or an entertainment expense or both.
It doesn’t matter what you call it from a CF perspective.

 

[Flashback]

Exactly, you will left with same amount of cash at the end of period. Doesn’t matter of different classification in CF (CFO/CFF).

 

[300hoursoverand]

thanks for the information ppl