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One company's Balance Sheet shows a huge decrease in its Notes Payable (N/P) in the current year from last year. Which of the following analyses

One company's Balance Sheet shows a huge decrease in its Notes Payable (N/P) in the current year from last year. Which of the following analyses is wrong?

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1. The decrease indicates that the company has made big payments of its long-term debt during the current year.

2. The decrease must have caused huge negative cash flows.

3. The decrease of the N/P will reduce the amount ($) of its future Interest Expenses.

4. The decrease must have lowered its Net Profit..

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