Express: Cardinal Leases


  • Solutions for Cardinal's leasing entries using BSE mini-matrix and journal entries
  • Financial statement effects for each entry: Balance sheet, income statement, direct cash flows from operations, and indirect cash-flow statement
  • Financial statement effects for changing Cardinal’s lease classification from capital to operating leases*

Express Video: [8 min]


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  iPod [mp4]      iPhone/Android/iPad [mp4]


Additional Materials:

Tutorial example on leases and the Cardinal model [pdf]

EntryInputs: Event descriptions [pdf]   

Accounts: Cardinal's chart of accounts [pdf] 

Balance sheet [pdf]

Income statement [pdf]

Direct cash from operations [pdf]

Indirect cash-flow statement [pdf]

Additional Video:

Capitalizing Operating Leases [45 min]


 *Accountants do not have much room for judgment in classifying a lease once the lease terms are set. In the Cardinal model, we assume management is not sure which way the leases will be classified prior to consulting with an accountant. This is realistic in a model based on forecasts, which is the case for Cardinal.