How Do The Paid Interest Expenses Present In The Statement Of Cash Flow?
Our hypothetical company’s annual interest expense is forecasted as $990k in 2022, followed by an interest expense of $970k in 2023. The mandatory repayment reduces the ending debt balance, resulting in an ending balance of $19.6 million at the end of 2022. Therefore, the principal amortization is calculated by multiplying the $20 million debt balance…