A firm has earnings before interest and taxes of $27,130,net income of $16,220, and taxes of $5,450 for the year. While the firm paid out $31,600 to pay off existing debt it then later borrowed $42,000. What is the amount of the cash flow to creditors? A) $14,040 B) -$4,940 C) -$14,040 D) $0 E) $4,940

A firm has earnings before interest and taxes of $27,130,net income of $16,220, and taxes of $5,450 for the year. While the firm paid out $31,600 to pay off existing debt it then later borrowed $42,000. What is the amount of the cash flow to creditors? A) $14,040 B) -$4,940 C) -$14,040 D) $0 E) $4,940

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Titan SpA’s net income for the most recent year was €4,850. The tax rate was 33 per cent. The firm paid €2,108 in total interest expense and deducted €1,687 in depreciation expense. What was Titan’s cash coverage ratio for the year?
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