During the Year, a Firm Paid $25,000 in Interest Expense

question 82

Multiple Choice

During the year, a firm paid $25,000 in interest expense and its long-term debt decreased from $350,000 to $250,000. What is the firm's cash flow to creditors?

• A) -$75,000
• B) -$25,000
• C) $25,000
• D) $75,000
• E) $125,000

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Definitions:

Days

Units of time equivalent to 24 hours, representing the approximate period it takes for the Earth to complete one rotation on its axis.

Sleep

A naturally occurring condition of the mind and body where consciousness is altered, sensory activities are largely reduced, and almost all voluntary muscles are inhibited.

Circadian Rhythms

Biological processes that display an endogenous, entrainable oscillation of about 24 hours, affecting various physiological processes in living organisms.

Melatonin

A hormone produced by the pineal gland that regulates sleep and wakefulness.