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Dogs 4 U Corporation Has Net Cash Flow from Financing

question 51

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Dogs 4 U Corporation has net cash flow from financing activities for the last year of $10 million. The company paid $8 million in dividends last year. During the year, the change in notes payable on the balance was $9 million, and change in common and preferred stock was $0 million. The end of year balance for long-term debt was $44 million. Calculate the beginning of year balance for long-term debt.

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Definitions:

Collateral Bond

A type of bond that is secured by a specific pledge of collateral.

Debenture

An unsecured bond that relies on the creditworthiness and reputation of the issuer, without collateral.

Face Value

The nominal or dollar value printed on a financial instrument like a bond or stock certificate, representing the amount to be repaid at maturity.

Principal Amount

The original sum of money borrowed in a loan, or invested, upon which interest is calculated.

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