Which one of the following statements related to the cash flow to creditors is c

Question

Which one of the following statements related to the cash flow to creditors is correct?
1. If the cash flow to creditors is positive then the firm must have borrowed more money than it repaid
2. If the cash flow to creditors is negative then the firm must have a negative cash flow from assets
3. If the cash flow to creditors is zero, then a firm has no long-term debt.
4. A positive cash flow to creditors represents a net cash outflow from the firm.
5. A positive cash flow to creditors mean that a firm has increased its long-term debt.

Explanation / Answer

4.

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