What is the cash flow to creditors for 2011?
A) -$170
B) -$35
C) $135
D) $170
E) $205

Question

What is the cash flow to creditors for 2011?
A) -$170 
B) -$35 
C) $135 
D) $170 
E) $205

Quizplus · Accepted Answer

To calculate cash flow to creditors, we need to subtract the increase in long-term debt from the operating cash flow.

Cash flow to creditors = Operating cash flow - Increase in long-term debt

From the statement, we know that operating cash flow for 2011 is $165 and the increase in long-term debt is $200.

So, cash flow to creditors = $165 - $200 = -$35

Therefore, the correct answer is B.

What Is the Cash Flow to Creditors for 2011