Ask Question
24 October, 03:38

At the beginning of the year, the long-term debt of a firm was $72,918 and total debt was $138,407. At the end of the year, long-term debt was $68,219 and total debt was $145,838. The interest paid was $6,430. What is the amount of the cash flow to creditors?

+1
Answers (1)
  1. 24 October, 03:42
    0
    Cash flow to creditors is $11,129

    Explanation:

    Interest Paid = I = $6,430

    Ending Long-Term Debt = E = $68,219

    Beginning Long Term Debt = B = $72,918

    Cash flow to creditors = Interest Paid - Ending Long-Term Debt + Beginning Long Term Debt

    Cash flow to creditors = I - E + B

    Cash flow to creditors = $6,430 - $68,219 + $72,918

    Cash flow to creditors = $79,348 - $68,219

    Cash flow to creditors = $11,129
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “At the beginning of the year, the long-term debt of a firm was $72,918 and total debt was $138,407. At the end of the year, long-term debt ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers