Carlisle Express paid $1,282 in interest and $975 in dividends last year. Current assets increased by $2,700, current liabilities decreased by $420, and long-term debt increased by $2,200. What was the cash flow to creditors?

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Mathematics

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8 July, 21:06

Carlisle Express paid $1,282 in interest and $975 in dividends last year. Current assets increased by $2,700, current liabilities decreased by $420, and long-term debt increased by $2,200. What was the cash flow to creditors?

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Bennett Gilbert · Answer 1

-$918

Step-by-step explanation:

Given information:

Interest = $1282

Dividend = $975

Current assets increased by $2,700.

Current liabilities decreased by $420.

Long-term debt increased by $2,200.

Working Capital = Current Assets - Current Liabilities

= $2700 - (-$420)

= $3120

Cash flow to creditors = Interest - Increase in long term debt = $1282 - $2200 = - $918.

Therefore, the cash flow to creditors is - $918.