Question

At the beginning of the year, Nothing More, Corp., had a long-term debt balance of $37,179. During the year, the company repaid a long-term loan in the amount of $9,789. The company paid $3,665 in interest during the year, and opened a new long-term loan for $8,655. What was the cash flow to creditors during the year?

$4,799
$15,070
$6,124
$4,990
$1,134

Answer 1

The cash flow to creditors during the year is $1,134. This is calculated as the beginning long-term debt balance of $37,179 minus the repayment of $9,789 plus the interest paid of $3,665 minus the new loan of $8,655.