Bank of America DeckMedium

A company raises $100 of debt at the end of the year. Walk through the three statements — then handle the follow-up on year two with 5% interest.

Model answer

At the raise: income statement — no change, since raising debt isn't revenue or expense. Cash flow statement — +$100 cash inflow from financing, so cash is up $100. Balance sheet — cash up $100…

The full, human-reviewed answer is in the bank.

Sign up free and Daily 10 serves you 10 questions a day from all 2,000+ — or go Pro for unlimited reps.

More from Bank of America Deck

Browse all topics