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Westkost [7]
4 years ago
14

During 2015, parrothead enterprises raised $380 in new long-term debt. what is the cash flow to creditors? (do not round interme

diate calculations.)
Business
1 answer:
Nimfa-mama [501]4 years ago
4 0

Cash flow to creditors is the amount of net cash flows (inflow or outflow) to the creditors. Cash flow to creditors is calculated with the help of following formula:

Cash flow to creditors = Repayment of loan/dues to creditors + interest payment – Net borrowings from the creditors

In the given problem we are given only the New Borrowing from creditors $380, hence the Cash flow to creditors shall be Negative $380.


Hence Cash flow to creditors = <u>-$380</u>


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Missing word<em> "and the cost of one point at the time of closing"</em>

<em />

Down payment = $260,000*15%

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