medium · Financial Accounting statement-of-cash-flows
During the year, Zenith Inc. issued bonds at a discount. The Interest Expense recorded was $85,000, but the actual cash paid for interest was $80,000.
How is this $5,000 difference handled in the operating section of the cash flow statement?
- Added to Net Income
- Subtracted from Net Income
- Ignored in the indirect method
- Reported as a financing outflow
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