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Fairbanks Co.'s balance sheet showed long-term debt of $3.5 million in 2016, and $4.25 million in 2017. In 2016, the balance sheet showed a common
Fairbanks Co.'s balance sheet showed long-term debt of $3.5 million in 2016, and $4.25 million in 2017. In 2016, the balance sheet showed a common stock account of $1.2 million, and 3.25 million in additional paid-in surplus account. In 2017, the balance sheet showed $1.3 million and 3.25 million in the same two accounts respectively. In 2017, the income statement showed an interest expense of $310,000 and dividends paid of $500,000. Calculate the cash flow to the creditors for the year.
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