BMO Financial Group Interview Question

If payment-in-kind depreciations changes how does it affect each finical statement?

Interview Answers

Anonymous

Nov 17, 2014

PIK are debt where interest is paid in the forms of other debt or issuing more debt rather than cash. Therefore if PIK are a liability and it is going down, the company is paying it off, means a that they are paying down debt with cash rather than more debt. Vice versa if PIK depreciations (being paid down) increases.

2

Anonymous

Jul 4, 2020

no shot they asked you this

1