At the Beginning of the Year,long-Term Debt of a Firm

question 6

Multiple Choice

At the beginning of the year,long-term debt of a firm is $270 and total debt is $340.At the end of the year,long-term debt is $290 and total debt is $390.The interest paid is $70.What is the amount of the cash flow to creditors?

• A)-$50
• B)-$120
• C)$20
• D)$50
• E)$60

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Definitions:

Mental Rotation

The ability to mentally turn or rotate a three-dimensional object and understand how it would look from a different perspective.

Humanistic View

An approach in psychology emphasizing empathy and stressing the good in human behavior.

Human Nature

The general psychological characteristics, feelings, and behavioral traits of humankind, regarded as shared by all humans.

Deterministic

A philosophical theory that all events, including moral choices, are determined by previously existing causes.