Enter the total interest paid, ending long-term debt, and beginning long-term debt into the calculator to determine the cash flow to creditors.
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Cash Flows to Creditors Formula
The following formula is used to calculate the cash flow to creditors.
CFC = I - E + B
- Where CFC is the cash flow to creditors
- I is the total interest paid
- E is the ending long term debt
- B is the beginning long term debt
To calculate cash flow to creditors, subtract the ending long term debt and beginning long term debt from the total interest paid.
Cash Flow From Creditors Definition
A cash flow from creditors is defined as the total cash flow a creditor collects from interest on a loan.
Cash Flow From Creditors Example
How to calculate cash flow from creditors?
- First, determine the interest paid.
Calculate the total interest paid.
- Next, determine the ending long term debt.
Determine the amount of long term debt at the end of the period.
- Next, determine the beginning long term debt.
Determine the amount of long term debt at the start of the period.
- Finally, calculate the cash flow from creditors.
Calculate the ash flow from creditors using the equation above.
FAQ
This is a financial term used to describe the total cash flow a creditor is collecting due to interest and long-term debt payments.
