Question

8). Cash flow to creditors-the 2018 balance sheet of Spieth's Golf Shop Inc., showed the long-term debt of $1.565 million. The 2019 income statement showed an interest expense of $170,000. What was the firm's cash flow to creditors during 2019?

Answer 1

Long term debt $1,565,000

Interest Expense

Cash flow to creditors = Interest paid - New term borrowing

New term borrowing = Long term borrowing_(end) - Long term borrowing_(beg)

So, Cash Flow to creditors = $170,000 - [Long term borrowing_(end) - $1,565,000}

Since end balance of long term debt not provided it cannot be solved further, if u have a value put it in the place of Long term borrowing_(end) and you will get an answer