Pete's Boats has beginning long-term debt of $180 and ending long-term debt of $210. The beginning and ending total debt balances are $340 and $360, respectively. The interest paid is $20. What is the amount of the cash flow to creditors?

Question

Quizplus · Accepted Answer

Cash flow to creditors is calculated as interest paid minus the net increase in long-term debt. Here, it is $20 - ($210 - $180) = $20 - $30 = -$10.

Pete's Boats Has Beginning Long-Term Debt of $180 and Ending