Question

Cash flow to creditors is equal to:

A. Cash flow from assets + cash flow to stockholders
B. Beginning TL - Endng TL + Interest paid
C. Begining LTD - Ending LTD + Interest paid
D. Ending TD - Beginning TD + Interest paid
E. Ending LTD -Beginning LTD + Interest paid

Answer 1

Cash flow to creditors is equal to Ending LTD - Beginning LTD + Interest paid.

Step-by-step explanation:

Cash flow to creditors is equal to: E. Ending LTD - Beginning LTD + Interest paid

Cash flow to creditors represents the cash paid by a company to settle its long-term debt obligations and pay interest on those debts. It is calculated by subtracting the beginning long-term debt (LTD) from the ending long-term debt and adding the interest paid during the period.