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7 December, 14:09

Carlisle Express paid $1,282 in interest and $975 in dividends last year. Current assets increased by $2,700, current liabilities decreased by $420, and long-term debt increased by $2,200. What was the cash flow to creditors?

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  1. 7 December, 14:23
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    -$918

    Step-by-step explanation:

    Given information:

    Interest = $1282

    Dividend = $975

    Current assets increased by $2,700.

    Current liabilities decreased by $420.

    Long-term debt increased by $2,200.

    Working Capital = Current Assets - Current Liabilities

    = $2700 - (-$420)

    = $3120

    Cash flow to creditors = Interest - Increase in long term debt = $1282 - $2200 = - $918.

    Therefore, the cash flow to creditors is - $918.
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