Originally Posted by
Carl Spackler
OK Pineapple Guy, let's discuss the accounting process in a way that even people without accounting 101 can understand. Let's take it step by step. Here's my first question:
When a corporation like Delta decides to PAY DOWN debt - what funds do they use to do this?
Carl
Oh, this should be fun. Let's take turns.
Answer: Cash
And here's my first question:
When a corporation pays down debt, what effect does that have on their net income?