Ask Question
14 July, 00:42

Jetson Spacecraft Corp. shows the following information on its 2019 income statement: sales = $214,000; costs = $91,000; other expenses = $6,100; depreciation expense = $9,100; interest expense = $13,300; taxes = $37,800; dividends = $10,100. In addition, you're told that the firm issued $7,900 in new equity during 2009 and redeemed $9,500 in outstanding long-term debt. What is the 2019 cash flow to creditors?

+5
Answers (1)
  1. 14 July, 04:27
    0
    The 2019 cash flow to creditors is $3,800

    Explanation:

    The computation of the cash flow to creditors is shown below:

    = Interest expense - ending balance of long term debt + beginning balance of long term debt

    = $13,300 - $9,500 + $0

    = $3,800

    Since beginning balance of long term debt is not given so we assume zero amount.

    The other items which are mentioned in the question are not being considered in the computation part. hence, these part are ignored
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Jetson Spacecraft Corp. shows the following information on its 2019 income statement: sales = $214,000; costs = $91,000; other expenses = ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers