At the beginning of the year, Nothing More Corporation had a long-term debt balance of $36,929. During the year, the company repaid a long-term loan in the amount of $9,439. The company paid $3,475 in interest during the year, and opened a new long-term loan for $8,365. What was the cash flow to creditors during the year?
At the beginning of the year, Nothing More Corporation had a long-term debt balance of $36,929. During the year, the company repaid a long-term loan in the amount of $9,439. The company paid $3,475 in interest during the year, and opened a new long-term loan for $8,365. What was the cash flow to creditors during the year?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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At the beginning of the year, Nothing More Corporation had a long-term debt balance of $36,929. During the year, the company repaid a long-term loan in the amount of $9,439. The company paid $3,475 in interest during the year, and opened a new long-term loan for $8,365. What was the cash flow to creditors during the year?
Expert Solution
Step 1
Cash flow to creditors is an important metric related to cash flows of a company.
It essentially is the total amount being collected by a creditor in the form of interest and long term debt payments.
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