Cash flow to creditors for the year. Introduction: The cash flow to creditors refers to the net payment received by the creditors of the company. It refers to the interest paid to the creditors minus the net fresh debt borrowed by the company. The cash flow to creditors will be negative if the net borrowing is higher than the interest paid.

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Chapter 2, Problem 2.4C

Summary Introduction

To determine: Cash flow to creditors for the year.

Introduction:

The cash flow to creditors refers to the net payment received by the creditors of the company. It refers to the interest paid to the creditors minus the net fresh debt borrowed by the company. The cash flow to creditors will be negative if the net borrowing is higher than the interest paid.

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