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Cash flow to creditors is defined as

03/05/2021 Client: muhammad11 Deadline: 2 Day

Cash flow to debt holder’s equation to compute the cash flow of a company. Cash flow is the measure of total amount of liquid cash that is moving in and out of the business.

Cash flow to creditors formula is derived as I - E + B where I = Interest Paid, E = Ending Long-Term Debt, B = Beginning Long Term Debt.

To find the cash flow, add the beginning and the ending long-term debt and then subtract with the interest paid to obtain the resultant value.

Formula:

Cash Flow to Creditors= I - E + B

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