Darwin Corp. shows the following information from its 2019 statement of comprehensive income. In 2019, the...

Darwin Corp. shows the following information from its 2019 statement of comprehensive income.

In 2019, the firm issued $6,242 in new shares, paid $14,481 dividend, and reduced $5,140 outstanding long-term debt. The corporate tax rate was 0.43.


Sales	$	255,206
Costs		157,942
Depreciation		17,246
Other expenses		8,864
Interest		14,259

Compute the 2019 CFC (cash flow to creditors) amount

Expert Solution

CFC is computed as follows:

= Interest expense - net new debt issued

= $ 14,259 - (- $ 5,140)

= $ 14,259 + $ 5,140

= $ 19,399

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jeff jeffy answered 2 years ago

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