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Anuta_ua [19.1K]
3 years ago
13

7. The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet show

ed long-term debt of $2.21 million. The 2018 income statement showed an interest expense of $255,000. What was the firm's cash flow to creditors during 2018?
Business
1 answer:
irina1246 [14]3 years ago
6 0

Answer:

The firm's cash flow to creditors during 2018 was –$85,000

Explanation:

The firms cash flow to creditors would be calculating by substracting the interest expense of the firm to the long-term debt taken during the period.

Cash flow to creditors = Interest expense – Net new LTD borrowing

Cash flow to creditors = Interest expense – (LTDend – LTDbeg)

Cash flow to creditors = $255,000 – ($2,210,000 – 1,870,000)

Cash flow to creditors = –$85,000

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8 0
3 years ago
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2 years ago
The Starr Co. just paid a dividend of $1.85 per share on its stock. The dividends are expected to grow at a constant rate of 4 p
Natasha2012 [34]

Answer:

Explanation:

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7 0
3 years ago
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NARA [144]

Answer:

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3 years ago
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Hence, the first option is correct

7 0
2 years ago
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