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11 February, 03:48

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?

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  1. 11 February, 04:46
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    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
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