Cash flow to creditors equals interest paid plus net new borrowing.
A cash flow from creditors is defined as the total cash flow which a creditor collects from the interest on a loan.
Cash Flows to Creditors is calculated by using the following formula:
CFC = I – E + B
Where CFC is considered as the cash flow to creditors
I is denoted as the total interest paid
E is the denotion of ending long term debt
B is the denotion of beginning long term debt
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