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A Firm Has Earnings Before Interest and Taxes of $25,380

Question 97

Multiple Choice

A firm has earnings before interest and taxes of $25,380 with a net income of $14,220.The taxes amounted to $5,400 for the year.During the year,the firm paid out $43,800 to pay off existing debt and then later borrowed an additional $24,000.What is the amount of the cash flow to creditors?


A) -$14,040
B) $19,800
C) $25,560
D) $28,440
E) $29,790

Correct Answer:

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