The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt o
ID: 2765428 • Letter: T
Question
The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt of $2.7 million, and the 2015 balance sheet showed long-term debt of $2.9 million. The 2015 income statement showed an interest expense of $95,000.
What was the firm’s cash flow to creditors during 2015? (Negative amount should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt of $2.7 million, and the 2015 balance sheet showed long-term debt of $2.9 million. The 2015 income statement showed an interest expense of $95,000.
Explanation / Answer
Cash flow to creditors = (interest paid -(long-term debt ending- long-term debt begining))
(95000-(2900000 - 2700000)) = - 105000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.