The 2010 balance sheet of The Beach Shoppe showed long-term debt of $2.1 million,and the 2011 balance sheet showed long-term debt of $2.3 million.The 2011 income statement showed an interest expense of $250,000.What was the cash flow to creditors for 2011?
A)-$200,000
B)-$150,000
C)$50,000
D)$200,000
E)$450,000

Question

Quizplus · Accepted Answer

Cash flow to creditors = $250,000 - ($2,300,000 - $2,100,000) = $50,000

The 2010 Balance Sheet of the Beach Shoppe Showed Long-Term