The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $

Question

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,400,000, and the December 31, 2016, balance sheet showed long-term debt of $1,580,000. The 2016 income statement showed an interest expense of $94,000.

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.)

Explanation / Answer

Cash Flow to creditors : - $ 86,000.

Cash flow to creditors = Interest Paid - Net New Borrowings = $ 94,000 - $ ( 1,580,000 - 1,400,000) = $ 94,000 - $ 180,000 = - $ 86,000.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.