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During 2022, the company raised $2,485 in new long-term debt. What is the cash flow to creditors?

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Final answer:

The cash flow to creditors with only the provided information about new long-term debt raised is a positive $2,485, yet a complete calculation requires additional details such as debt repayments and interest payments which were not provided.

Step-by-step explanation:

The cash flow to creditors for a company that raised $2,485 in new long-term debt during 2022 can be calculated as the net cash provided to or used by creditors during the period. This typically includes cash outflows like repayments of existing debts and cash inflows from new borrowed funds. However, with the information provided, we are not given details on any debt repayments that may have occurred. Therefore, if we only consider the new long-term debt raised, the cash flow to creditors would be a positive cash inflow of $2,485 under the assumption that there were no debt repayments or interest payments made during the period. Without further details, such as interest payments or repayments of principal, a complete calculation is not possible. In practice, you would need to account for these additional factors to calculate the total cash flow to creditors accurately.

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