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19 January, 09:42

During the past year, Yard Services paid $36,800 in interest along with $2,000 in dividends. The company issued $3,000 of stock and $16,000 of new debt. The company reduced the balance due on its old debt by $18,400. What is the amount of the cash flow to creditors?

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  1. 19 January, 11:56
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    The amount of the cash flow to creditors is $39200.

    Explanation:

    cash flow to creditors = Interest payments + reduced balance of old debt - Issued balance of new debt

    = ($36800 + $18400 - $16000)

    = $39200.

    Therefore, the amount of the cash flow to creditors is $39200.
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