zephyranalyst

What's your specific question? Finance lease increases your assets by the same amount your liabilities increase. You do a finance lease on a doughnut machine; the doughnut machine is an asset on your B/S, the present value of the future lease payments is a liability on your B/S. They offset each other. Operating leases don't show up on your financial statements at all except for a yearly expense amount on the rent/lease/etc payment.