PP&E Purchase 3 Statement Question
Company buys $200 PP&E 50% cash/50% debt with x interest (lets say 10%) and y principal repayment lets say ($10)
Thanks!
Trending Content - Investment Banking Forum
| +197 | Americas M&A League Table Q2 Updated | 79 | 3h |
| +131 | Restructuring: Anti-climactic Experience | 34 | 1d |
| +102 | IB Net Worth / Savings Check | 49 | 25m |
| +91 | Woman who emptied Knicks trashcan on street then stole it was DEI exec, worked at JPMorgan Chase | 24 | 13h |
| +80 | Stop sleeping on UBS - it’s pretty good | 26 | 2h |
| +52 | 2026 VAULT PRESTIGE RANKINGS | 29 | 1d |
| +39 | AI + Financial Modelling | 12 | 1d |
| +30 | Hardest interview experiences? | 16 | 23h |
| +28 | Summer before college | 17 | 13h |
| +26 | Current State of UBS in North America | 8 | 2d |
Career Resources
Balance sheet: PPE goes up $200, cash down $120 (100 paid for PPE, 10 for interest, 10 to repay loan), liability for the note payable up $90 (100-10 repaid)
Income Statement: SGA goes up by your interest expense ($10), lowers income before taxes by 10 which lowers taxes by 10*tax rate. Assume 40% tax rate so taxes are lowered by $4 so net income goes down $6.
Cash Flows CFO: Down by interest payment ($10), up by tax savings ($4), so net down $6 CFI: Goes down $100 (cash paid for equipment) CFF: Goes down by principal repayment ($10)
Pretty sure this is right
Vero eligendi harum eaque et iusto. Sapiente architecto non dolores ut aspernatur. Nemo distinctio quisquam voluptates nostrum ut quia eaque. Explicabo eius rem autem sint nihil.
Facilis reiciendis quo quisquam fuga deleniti culpa et accusantium. Repudiandae odio inventore esse. Tenetur ut at molestiae consequuntur autem et.
Eaque omnis atque iste voluptate ea qui commodi. Ut debitis rerum repudiandae esse et aut quia in. Est error cum et sapiente. Sit incidunt omnis architecto perferendis sed et est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...