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A Firm Has Earnings Before Interest and Taxes of $27,130,net

Question 96

Multiple Choice

A firm has earnings before interest and taxes of $27,130,net income of $16,220, and taxes of $5,450 for the year.While the firm paid out $31,600 to pay off existing debt it then later borrowed $42,000.What is the amount of the cash flow to creditors?


A) -$14,040
B) $0
C) -$4,660
D) $14,040
E) $4,660

Correct Answer:

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