At the beginning of the year, long-term debt of a firm is $280 and total debt is $325. At the end of the year, long term debt is $255 and total debt is $335. The interest paid is $21. What is the amount of the cash flow to creditors? $46 -$25 -$46 $25 $21

At the beginning of the year, long-term debt of a firm is $280 and total debt is $325. At the end of the year, long term debt is $255 and total debt is $335. The interest paid is $21. What is the amount of the cash flow to creditors? $46 -$25 -$46 $25 $21

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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Q. 8

$46
-$25
-$46
$25
$21

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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