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Textbook : Essentials of Corporate Finance (8th Edition) / Chapter 2 / Problem 22QP, D (Solution Step 8)

I want to ask about the amount of cash flow to creditors. (Chapter 2, 22, d)

According to the solution (Step 8), Cash flow to creditors is calculated by subtracting 'Debt repayment during the year' and 'Interest paid' from 'New debt raised'

(New debt Raised - Debt Repayment During the year - Interest Paid) and the answer is $598.

But I learned that Cash flow to creditors should be calculated with the formula 'Interest paid - Net new borrowings'.

Accrodingly, I calculated like this:

$750 - ($9,434 - $8,086) = -$598

I don't understand the solution's logic and answer. Can you explain?

Calculating Cash Flows. Consider the following abbreviated financial statements for Cabo Wabo, Inc. CABO WAB0, INC. Partial Balance Sheets as of December 31, 2013 and 2014 CABO WABO, INC. 2014 Income Statement 2013 2014 2013 2014 $47,842 23,992 4,040 750 Sales Costs Liabilities and Owners' Equity Assets Interest paid Cument aseets 3,198 3,389 Cument liabilitiee $1,381 $2,030 Net fixed assets 14,826 15,500 Long-term debt 8,086 9,434 a. What is owners' equity for 2013 and 2014? b. What is the change in net working capital for 2014? c. In 2014, Cabo Wabo purchased $8,424 in new fixed assets. How much in fixed assets did Cabo Wabo sell? What is the cash flow from assets for the year? (The tax rate is 40 percent.) d. During 2014, Cabo Wabo raised $2,535 in new long-term debt. How much longterm debt must Cabo Wabo have paid off during the year? What is the cash flow to creditors

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