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 Statement of Financial Details for Debt Repayment CS4645 2023-2024

Cs4645 2023-2024 Form

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hello everyone and welcome back to our interview question review series today we're going to look at the issuance of debt and pick interest and how they flow across the three statements a quick note here the framework for answering uh this question all of our three statement questions is laid out in the first video definitely check that out first if you have already seen that video with that let's hop in so we're going to start with the assumption that a company is issued 100 of debt and the question is how does this flow across the three financial statements generally speaking when this question is being asked what people are trying to figure out is if you understand that when you issue debt the money comes in the door but there's no interest incurred off the bat so as a starting point there's no income statement impact uh from a debt issuance at least at time zero so the net income impact from a debt issuance off the bat is going to be zero moving from there we're gonna go to step tw

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