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Andreas93 [3]
3 years ago
13

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,460,000, and the December 31, 2016, balance sh

eet showed long-term debt of $1,700,000. The 2016 income statement showed an interest expense of $100,000.What was the firm's cash flow to creditors during 2016? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Business
1 answer:
victus00 [196]3 years ago
4 0

Answer:

- $140,000

Explanation:

The Cash flow to creditors = Interest paid - Net new borrowing

                                           = Interest paid - (Ending Long term debt - Beginning Long term debt)

                                         = $100,000 - ($1,700,000 - $1,460,000)

                                         = $100,000 - $240,000

                                         = - $140,000

Therefore, the cash flow to creditors is - $140,000.

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