You are the CEO of a company that is having difficulties this year because of COVID. You have 18 partners. Your CFO informed you this morning that a Capital Call is required and that the amount will be $16,000 per partner totaling $288,000. Please answer the following:

5.1 What is the effect of the Capital Call on the Income Statement?

5.2 What is the effect of the Capital Call on the Balance Sheet?

5.3 What is the effect of the Capital Call on the NCF?

5.4 What is the effect of the Capital Call on the IRR?

5.5 What is the effect of the Capital Call on the NPV?

5.6 What is the effect of the Capital Call on the company’s taxable income?

Answer rating: 100% (QA)

51 The effect of the Capital Call on the Income Statement The Capital Call itself does not directly impact the Income Statement It represents an inflo... View the full answer