Help - $10 Increase in Interest Expense Affecting Three Statements
How would a $10 increase in Interest Expense affect the three financial statements? Assume 40% Tax Rate.
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Bump
is: reduce net inc by 6 (tax. of 40p)
cash flow: -6 at top from net income, add back 10 because tax deduct exp
bs: 4 flow in from cf, -10 for assets side = -6 from assets, -6 in shareholder eq from NI on IS = balance
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