- Issuance of short-term debt would result in an increase in cash flow from operations on the statement of cash flows. (True Or False)
- If you are a lender evaluating a loan application and you calculate the following ratio: (EBIT + Lease Payments)/[Interest + Lease Payments + (Sinking Fund/(1-T))], then you are calculating a debt service ratio and it should be less than one in order to approve the loan. (True Or False)