If for the past year, lp gas, inc., had cash flow from assets of $38,100 of which $21,500 flowed to the firm's stockholders. the interest paid was $2,300. The amount of the net new borrowing is:-$14,300.
<h3>Net new borrowing</h3>
First step is to calculate the cash flow to creditors
Cash flow to creditors = $38,100 -$21,500
Cash flow to creditors= $16,600
Second step is to calculate the net new borrowing using this formula
Net new borrowing =Interest paid -Cash flow to creditors
Let plug in the formula
Net new borrowing = $2,300 - 16,600
Net new borrowing = -$14,300
Therefore If for the past year, lp gas, inc., had cash flow from assets of $38,100 of which $21,500 flowed to the firm's stockholders. the interest paid was $2,300. The amount of the net new borrowing is:-$14,300.
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