Problem:
During the past year, the Rawlins Co. paid $234,800 in interest along with $75,000 in dividends. The company issued $50,000 of stock and $200,000 of new debt. The company reduced the balance due on the old debt by $325,000.
Required:
Question 1: What is the amount of the cash flow to creditors for the year? Explain in detail and provide all workings.