medium · Private Equity accounting-flow
How does PIK interest appear in the Cash Flow from Financing (CFF) section of the Cash Flow Statement in the year it accrues?
- It appears as a cash outflow for interest repayment.
- It appears as a financing expense that reduces the cash balance.
- It appears as a cash inflow of new debt proceeds.
- It typically does not appear in CFF because no cash moved.
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