Can someone quickly do a "how does it affect 3 financial statements" if you purchase an asset by taking on debt?
My thoughts were:
CF: Cash from Financing (taking on debt) UP, Cash from Investing (purchasing building) DOWN, NI DOWN - end result?
IS: Depr. Expense UP, Int. Expense UP - NI down?
BS: PP&E UP, LT Debt UP - balanced?
I don't think the above is right, and am trying to prepare for these questions for interviews tmrw.
Also, what happens when you issue a dividend?
Any help would be greatly appreciated.
Thanks in advance
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