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Minbari, Inc. shows the following information on its Y2019 income statement: Sales = $480,000; Cost of goods sold = $200,000; Depreciation expense = $30,000; Interest

Minbari, Inc. shows the following information on its Y2019 income statement: Sales = $480,000; Cost of goods sold = $200,000; Depreciation expense = $30,000; Interest expense = $50,000; Tax rate = 20%; Dividends = $30,000. The firm issued $20,000 in new equity, and used the amount to redeem $20,000 in outstanding long-term debt.

What is the Y2019 cash flow to creditors of Minbari, Inc.?

  1. -$30,000.
  2. -$20,000.
  3. +$30,000.
  4. +$70,000.

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