Ask Question
19 September, 14:48

At the beginning of the year, long-term debt of a firm is $308 and total debt is $339. At the end of the year, long-term debt is $269 and total debt is $349. The interest paid is $35. What is the amount of the cash flow to creditors

+4
Answers (1)
  1. 19 September, 15:16
    0
    The amount of the cash flow to creditors is $74

    Explanation:

    Beginning of the year:

    Long-term debt = $308

    Total debt = $339

    At the end of the year:

    Long-term debt = $269

    Total debt = $349.

    Interest = $35

    Net new borrowing = Ending Long-term debt - Beginning Long-term debt

    = $269 - $308

    = ($39)

    Cash flow to creditors = Interest paid - Net new borrowing

    = $35 - ($39) = $ 74
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “At the beginning of the year, long-term debt of a firm is $308 and total debt is $339. At the end of the year, long-term debt is $269 and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers