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
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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
Transcribed Image Text: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
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