Question

At the beginning of the year, Nothing More, Corp., had a long-term debt balance of $37,929. During the year, the company repaid a long-term loan in the amount of $10,839. The company paid $4,235 in interest during the year, and opened a new long-term loan for $9,525. What was the cash flow to creditors during the year

Answer 1

$5549

Step-by-step explanation:

Calculation to determine the cash flow to creditors during the year

Using this formula

Cash flow to creditors =Interest -New debt

Let plug in the formula

Cash flow to creditors=4235-(9525-10,839)

Cash flow to creditors=4235-(-1314)

Cash flow to creditors =$5549

Therefore the cash flow to creditors during the year is $5549