B Most Visited Getting Started My USC Aiken- Black. The True Story of Poc... con
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B Most Visited Getting Started My USC Aiken- Black. The True Story of Poc... connect BADM 363 Business Finance: Fall 2017 (ALL SECTIONS) rys Exam #2 (Chapters 2&3) instructions i help Question 4 (of 50) Save & Exit | | Submit ime remaining 256.00 1000 points Problem 2-10 Cash Flow to Creditors [LO 4] The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,375,000, and the December 31, 2016, balance sheet showed long-term debt of $1,530,000. The 2016 income statement showed an interest expense of $91,500 9486 What was the frm's cash fow to creditors during 2016 A negatye 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.) Cash flow to creditors References Problem 2-10 Cash Flow to Creditors ILO 4] 6-18 PM 1/10/2017Explanation / Answer
Long term debt increased= 1530000-1375000= 155000, which means additional debt taken from creditors.
Interest expense of 91500 means payment of 91500 to creditros,
which means effectively 155000-91500= 63500 taken from creditors
since question is about cash flow to creditors, -63500 will be shown as cash flow to creditors
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