Find cash flow to debtholders

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Reference no: EM131451952

In period 1, a firm had sales of $2,000, cost of goods sold of $1, 100, depreciation of $250, interest of $100, and dividends of $50. At time 0, the balance sheet showed current assets of $475, fixed assets of $900, and current liabilities of $300. At time 1, the firm had current assets of $525, fixed assets of $1,000, and current liabilities of $325. In period 1, cash flow to equityholders was $200. The tax rate is 20%. Find cash flow to debtholders.

Reference no: EM131451952

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