Posts by: Trill L
Tax effects on cash flow
On pg.263, Exercise 1, the answer is the cash flow will not be influenced by the deferral cost. But shouldn't the effect on taxes be considered? So that a higher pre-tax income leads higher tax payments and then a lower cash flow. Looking forward to your reply!
On pg.263, Exercise 1, the answer is the cash flow will not be influenced by the deferral cost. But shouldn't the effect on taxes be considered? So that a higher pre-tax income leads higher tax payments and then a lower cash flow. Looking forward to your reply!
on Liabilities Exercise on pg311. In the video, the instructor refers to effective method to calculate the expense and record the entry. Why don't we go with the non-interest bearing debt analysis? Since it is a zero-coupon bond, shouldn't it be considered a non-interesting bearing bond? The differe... on Liabilities Exercise on pg311. In the video, the instructor refers to effective method to calculate the expense and record the entry. Why don't we go with the non-interest bearing debt analysis? Since it is a zero-coupon bond, shouldn't it be considered a non-interesting bearing bond? The different treatments will yield different interest expenses. That's why I am confused. Looking forward to your reply! Read More