cfo threw me off

[ryanwtyler]

i hate this stuff but i was doing a cfo problem and saw increase in short term notes payable. i associated that with interest expense. so i added to CFO. schweser says thats a financing activity.

but if your interest expense was say 10,000 and you olnly paid 8,000 of it, wouldnt short term notes payable go up?

 

[shreya4848]

Increase in notes payable=> More interest paid=> CFO decreases

 

[mib20]

8000 flows to CFO and interest payable increases by 2000, the increase in notes payable flows to CFF.