Cash flow to creditors is defined as:
A)interest paid minus net new borrowing.
B)interest paid plus net new borrowing.
C)operating cash flow minus net capital spending minus the change in net working capital.
D)dividends paid plus net new borrowing.
E)cash flow from assets plus net new equity.

Question

Quizplus · Accepted Answer

Cash flow to creditors is calculated as the interest paid to creditors minus any net new borrowing from them.

Cash Flow to Creditors Is Defined As