View All num of num See all Photos Deutsche Bank www.deutsche-bank.de Unclaimed Profile Overview Reviews Salaries Interviews Jobs Photos Benefits 1.4k Reviews 3.6k Salaries 567 Interviews Follow Add Review or Salary Follow Add Review or Salary Interview Question Investment Banking Analyst Interview Deutsche Bank Lets say you're a company and you're paying your employees with all cash. Now you decide to pay them half with cash and half with stock compensation. How does this effect the three statements? Tags: See more , See less 8 Answer Add Tags Answer Interview Answer 1 Answer ▲ 0 ▼ Starting with the income statement...It remains unchanged. Your operational expenses have not changed.Cash flow statement...The only thing that changes Cash flow from operations, where you add back the cash amount from paying with stock (since it is a non-cash expense). Overall cash flow is up by the amount you paid in stock. Balance sheet... Cash on assets side is up. On the liabilities + SE side, issuing equity to compensate increases SE, thus causing BS to balance. j on Sep 27, 2014 Interviews > Investment Banking Analyst > Deutsche Bank Add Answers or Comments To comment on this, Sign In or Sign Up.