FINANCE h. 2& 3 Financial Statements & Financial Statement Analysis Extra Credit

Question

FINANCE h. 2& 3 Financial Statements & Financial Statement Analysis Extra Credit Practice value 2.77 points The 2014 balanc e sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $3.5 million, and the 2015 balance sheet showed long-term debt of $3.7 million. The 2015 income statement showed an interest expense of $115,000 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.) Cash flow to creditons References eBook & Resources Worksheet uity: Basic Check my work

Explanation / Answer

Cash payment to creditor in term of interest = $115,000

Raise new long term debt = $3,700,000 - $3,500,000

= $200,000.

Cash flow to creditor = $115,000 - $200,000

= -$85,000.

Cash flow to creditor in year 2015 is -$85,000.

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