What is the amount of the cash flow to creditors

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Reference no: EM131586298

1. At the beginning of the year, long-term debt of a firm is $1,430,000 and total debt is $3,080,000. At the end of the year, long-term debt is $1,328,000 and total debt is $3,512,400. The interest paid is $86,000. What is the amount of the cash flow to creditors?

a. -$102,000

b. $188,000

c. $86,000

d. $16,000

e. $224,000

2. Looney Entertainment has net income of $1,615,000. The firm pays out 40 percent of the net income to its shareholders as dividends. During the year, the company sold $620,000 worth of common stock. What is the cash flow to stockholders?

a. $35,000

b. $72,000

c. -$35,000

d. $45,000

e. $26,000

Reference no: EM131586298

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