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vitfil [10]
3 years ago
14

Adison Winery had beginning long-term debt of $39,476 and ending long-term debt of $44,875. The beginning and ending total debt

balances were $48,835 and $53,888, respectively. The company paid interest of $4,327 during the year. What was the company's cash flow to creditors?
Business
1 answer:
scoundrel [369]3 years ago
5 0

Answer:

The answer is -$1,072

Explanation:

The company's cash flow to creditors is the total amount of money paid to the creditors. It is a cash outflow because money goes out of the company to pay the creditors.

Company's cash flow to creditors = Interest paid - (ending long-term debt - beginning long-term debt)

$4,327 - ($44,875 - $39,476)

$4,327 - $5,399

= -$1,072

Note: The answer is in negative.

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