One company's Balance Sheet shows a huge decrease in its Notes Payable (N/P) in the...
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Accounting
One company's Balance Sheet shows a huge decrease in its Notes Payable (N/P) in the current year from last year. Which of the following analyses is wrong?
1. The decrease of N/P must have lowered its Net Profit.
2. The decrease of the N/P will reduce the amount ($) of its future Interest Expenses.
3. The decrease indicates that the company has made big payments of its long-term debt during the current year.
4. The decrease must have caused huge negative cash flows.
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You can see the logs in the Dashboard.