Question 7 11.11 pts Wing Air, Inc. has a beginning long-term debt of $290 and an...

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Question

Question 7 11.11 pts Wing Air, Inc. has a beginning long-term debt of $290 and an ending long-term debt of $301. The beginnin

business finance

Answer 1

Answer #1

cashflow to creditors = Interest paid - net new borrowing

So we can look into the given information. Interest paid is given in the question

Interest paid = $25

so after this we should identify net new borrowing

Net new borrowing = Long term debt end of the year - long term debt beginning of the year

Net new borrowing = $301 - $290

= $11

Cash flow to creditors = $25- $11

= $14

So the correct answer

Amount of cash flow to creditors is $14.

Answer 2

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