Question
Cash flow to creditors. Use the data from the following financial statements in the popup window, The company paid interest expense of $18,000 for 2014
Cash flow to creditors. Use the data from the following financial statements in the popup window, The company paid interest expense of $18,000 for 2014 and had an overall tax rate of 40% for 2014. Find the cash flow to creditors for 2014 by parts and total, with the parts being interest expense and increases or decreases in borrowing (long-term debt).
| Partial Income Statement Year Ending 2014 | |
| Sales revenue | $350,000 |
| Cost of goods sold | $140,000 |
| Fixed costs | $43,000 |
| Selling, general, and administrative expenses | $28,000 |
| Depreciation | $46,000 |
| Partial Balance Sheet 12/31/2013 | |||
| ASSETS |
| LIABILITIES |
|
| Cash | $16,000 | Notes payable | $14,000 |
| Accounts receivable | $28,000 | Accounts payable | $19,000 |
| Inventories | $48,000 | Long-term debt | $190,000 |
| Fixed assets | $368,000 | OWNERS' EQUITY |
|
| Accumulated depreciation | $142,000 | Retained earnings |
|
| Intangible assets | $82,000 | Common stock | $130,000 |
| Partial Balance Sheet 12/31/2014 | |||
| ASSETS |
| LIABILITIES |
|
| Cash | $26,000 | Notes payable | $12,000 |
| Accounts receivable | $19,000 | Accounts payable | $24,000 |
| Inventories | $53,000 | Long-term debt | $162,000 |
| Fixed assets | $448,000 | OWNERS' EQUITY |
|
| Accumulated depreciation |
| Retained earnings |
|
| Intangible assets | $82,000 | Common stock | $180,000 |
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