Answer:
The cash flow for Kerber's tennis shop for the year 2018 to creditor's is -$85,000
Step-by-step explanation:
Balance sheet of Kerber’s Tennis Shop for 2017, Inc is recorded as follows
Given that.
Interest paid = $255,000
Less:
long-term debt in 2018$ = 2.21 million
Less:
long-term debt brought forward from 2017 = $1,870,000 million
Total (taken as net new borrowing)
= $2,210,000- $1,870,000
= $340,000
Cash flow to creditors = 2018 Interest expense less net new borrowing
= $255,000 - $340,000
= −$85,000
We have -$85,000 as the cash flow to creditors during 2018