At the beginning of the year, MECCS Inc. had long-term debt of$1,893 and total debt...

At the beginning of the year, MECCS Inc. had long-term debt of $1,893 and total debt of $3,685. At the end of the year, the long-term debt is $1,581 and total debt is $3,192. If $993 of interest was paid during the year, what is the cash flow to creditors? Group of answer choices

$500

$681

$1,486

$1,305

Solutions

Expert Solution

Cash Flow to creditors is Interest Pat=yment - Net Borrowing

Here the Total debt decreased from 3,685 to 3,192. So there is Debt Repayment and not borrowing. Repayment will be added in Interest payment to get total cash flow to creditors.

Debt Repayment = Opening Debt - Closing Debt

= 3,685 - 3,192

= 493

Cash Flow to Creditors = Interest Payment + Debt Repayment

= 993 + 493

= 1486

So the correct option is 1,486

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

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

Ali & Son Enterprise had beginning long-term debt of $41,048and ending long-term debt of $26,745....

Ali & Son Enterprise had beginning long-term debt of $41,048 and ending long-term debt of $26,745. The beginning and ending total debt balances were $97,131 and $82,395, respectively. The interest paid was $3,081. What is the amount of the cash flow to creditors?

ali & son enterprice had beginnig long-term debt of $37,157 and ending long term debt of...

ali & son enterprice had beginnig long-term debt of $37,157 and ending long term debt of 28258$. the beginning and ending table balance were $87517 and $84470, reprecebtively . the interset paid was $3410 what is the amount of cash flow to crediors

Current Portion of Long-Term Debt PepsiCo, Inc., reported the following information about its long-term debt in...

Current Portion of Long-Term Debt PepsiCo, Inc., reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt is comprised of the following: December 31 Current Year Preceding Year Total long term-debt $33,284 $28,897 Less current portion (4,071) (5,076) Long-term debt $29,213 $23,821 a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet? b. How much did the total current...

The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term...

The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .43 and a current ratio of 1.27. Current liabilities are $2,395, sales are $10,465, profit margin is 11 percent, and ROE is 16 percent. What is the amount of the firm’s long-term debt? (Do not round intermediate calculations and your answer to 2 decimal places, e.g., 32.16.) What is the amount of the firm’s total debt? (Do not round intermediate...

1)Current Portion of Long-Term Debt Connie's Bistro, Inc. reported the following information about its long-term debt...

1)Current Portion of Long-Term Debt Connie's Bistro, Inc. reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: December 31 Current Year Preceding Year Total long-term debt $654,000 $359,700 Less current portion (189,700) (176,600) Long-term debt $464,300 $183,100 a. How much of the long-term debt was disclosed as a current liability on the current year’s December 31 balance sheet? Current Portion of Long-Term Debt Connie's Bistro,...

Capital Asset Pricing: XYZ Inc. has the following information: Total Market Value of Long-Term Debt: $900,000;...

Capital Asset Pricing: XYZ Inc. has the following information: Total Market Value of Long-Term Debt: $900,000; Weight 37% Total Market Value of Preferred Stock: $30,000; Weight 1.2% Total Market Value of Common Stock: $1,500,000; Weight 61.7% Tax Rate= 21% YTM on Bonds= 7.8% Annual Preferred Dividend= $4.75 Preferred Stock Price= $41 Flotation Costs on Issuance of New Preferred Stock= 4% Next Year’s Expected Common Stock Dividend= $2.25 Current Common Stock Price= $49 Expected Dividend Growth Rate= 6.5% 1) Compute the...

What is the term used to refer to the yield on a long-term (20-year) debt obligation...

What is the term used to refer to the yield on a long-term (20-year) debt obligation issued by the U.S. government?

The Arkham Company has a ratio of long-term debt to long-term debt plus equity of .43...

The Arkham Company has a ratio of long-term debt to long-term debt plus equity of .43 and a current ratio of 1.5. Current liabilities are $990, sales are $6,410, profit margin is 9.3 percent, and ROE is 20.4 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net fixed assets = neither of these are the answer 5362.74, 3,683.75, 5378.53

The Arkham Company has a ratio of long-term debt to long-term debt plus equity of .39...

The Arkham Company has a ratio of long-term debt to long-term debt plus equity of .39 and a current ratio of 1.7. Current liabilities are $950, sales are $6,370, profit margin is 9.8 percent, and ROE is 20 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Subjects