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At the beginning of the year, long-term debt of a firm is $304 and total debt...

At the beginning of the year, long-term debt of a firm is $304 and total debt is $337. At the end of the year, long-term debt is $267and total debt is $347. The interest paid is $33. What is the amount of the cash flow to creditors?

33

37

-70

70

-37

Solutions

Expert Solution

Cash flow to creditors = Interest paid + (Ending long-term debt - Beginning long-term Debt)

Interest paid = $33

Ending Long-term Debt = $267

Beginning Long-term Debt = $304

So, Cash flow to creditors = $33- ($267-$304)= $70

jeff jeffy answered 2 years ago
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