How Does the Current Portion of Long-term Debt Affect Cash Flow Statement?
(iii) Other items for which the cash effects are investing or financing cash flows. Cash flows are inflows and outflows of cash and cash equivalents. Asset-based financing helps companies to borrow money, but the collateral for the loan is an asset on the balance sheet. Assets that are used as collateral might include equipment, inventory, machinery, land, or company vehicles. It allows management to optimize the company’s finances to grow faster and deliver greater returns to the shareholders. However, [...]