Question

Question 1 1.5 pts The 2013 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2.5 million, and the 2014 balance sheet showed long-term debt of $3.7 million. The 2014 income statement showed an interest expense of $727,000 What was the firm's cash flow to creditors during 2014? (Round final answer to the nearest whole dollar. Do not round intermediate calculations). Topic: Cash Flow Identity

Answer 1

	Maria's Tennis Shop,Inc.
	Formula:
	Cash flow to creditors=Beginning total liabilities-Ending total liabilities+Interest Paid
	Beginning Long Term Debt in 2013=(A)	$ 25,00,000.00
	Ending long term debt in 2014=(B)	$ 37,00,000.00
	Interest Paid=(C)	$    7,27,000.00
	Cash flow to creditors during 2014=(A)-(B)+(C )	$ -4,73,000.00