that way we can get the assets we want without having to record a liability on the b 558614

Evaluating Lease Alternatives As the new vice president for consumer products at Heffner Manufacturing, you are attending a meeting to discuss a serious problem associated with delivering merchandise to customers. Bob Smith, director of logistics, summarized the problem: “It”s easy to understand, we just don”t have enough delivery trucks given our recent growth.” Barb Bader from the accounting department responded: “Maybe it”s easy to understand but it”s impossible to do anything. Because of Wall Street”s concern about the amount of debt on our balance sheet, we”re under a freeze and can”t borrow money to acquire new assets. There”s nothing we can do.” On the way back to your office after the meeting, your assistant offers a suggestion: “Why don”t we just lease the trucks we need? That way we can get the assets we want without having to record a liability on the balance sheet.” How would you respond to this suggestion?