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The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt of $6.2 million, and...

The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt of $6.2 million, and the 2015 balance sheet showed long-term debt of $6.6 million. The 2015 income statement showed an interest expense of $170,000.

What was the firm’s cash flow to creditors during 2015?
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Answer #1

Cash flow to creditors = Interest Exp – Ending long term debt + Beginning long term debt

                                    = 170000 – 6600000 + 6200000

                                     = (230000)

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Hope that helps.

Feel free to comment if you need further assistance J

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