1. Compare the effects of operating leases as compared to capitalized leases, in the first year of a lease, on the following items listed. Explain your answer. a. EBIT b. Net income c. Return on assets d. Cash flows from operations e. Current ratio 2. Consider each transaction independently and explain your answer. Assume that ROCE is higher than RNOA. a. Company issues more preferred stock and uses proceeds to reduce accounts payable. b. Company has a stock split. C. Company converts to just-in-time inventory system (JIT). This allows them to hold half the levels of inventory for the same amount of sales (sales themselves are not increased by this change to JIT) Discuss their effects on: (1) (2) (3) ROCE RONA EPS-basic