Carlisle Express Paid $1,282 in Interest and $975 in Dividends

question 68

Multiple Choice

Carlisle Express paid $1,282 in interest and $975 in dividends last year. Current assets increased by $2,700, current liabilities decreased by $420, and long-term debt increased by $2,200. What was the cash flow to creditors?

• A) −$530
• B) −$918
• C) $1,839
• D) 2,132
• E) $3,094

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Definitions:

Marginal Revenue Product

The additional revenue a firm gains from employing one more unit of input, holding all other inputs constant.

Output

The amount of goods or services produced by a company, industry, or economy within a specified period.

Profit-Maximizing

A strategy where a firm determines the price and production level that generates the highest possible profit.

MRP

The additional revenue a firm gains from hiring an additional unit of input, such as labor, in the production of goods.