the December 31,2015, balance sheet of schism, inc., showed long-term debt of $1,410,000, and the December...

the December 31,2015, balance sheet of schism, inc., showed long-term debt of $1,410,000, and the December 31, 2016 balance sheet showed long-term debt of $1,551,000. the 20q6 income statement showed an interest expense of $102,800. what was the firm's cash flow to creditors during 2016?

Expert Solution

Cash flow to creditors

Cash flow to creditors = Interest paid – Net New Borrowing

= Interest paid – (Ending long term debt – Beginning long term debt)

= $102,800- ($1,551,000- $1,410,000)

= $102,800- $141,000

=- $38,200

jeff jeffy answered 2 years ago

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