During 2015, parrothead enterprises raised $380 in new long-term debt. what is the cash flow to creditors? (do not round intermediate calculations.)

Cash Flow to Creditors is a part of the cash flow statement that shows the net amount of cash that a company has paid out to creditors over a period of time. It represents outflows of cash to the company's long-term debt providers and consists of two parts:

1. Interest payments made to the creditors during the year (considered an operating cash flow). 2. Net new borrowing, which is the difference between new debt raised and debt repayments (considered a financing cash flow).

The Cash Flow to Creditors specifically can be calculated as:

Cash Flow to Creditors = Interest Paid - Net New Borrowing

However, in the information you've provided, we only have the amount of new long-term debt raised, which is $380. This figure seems to represent the net new borrowing. We do not have the interest payment information. If no debt was repaid during the year, and we assume that the interest paid is zero or not considered in this case, the cash flow to creditors would simply be the negative of the new borrowing:

Cash Flow to Creditors = -$380

This would mean that the net cash flow to creditors is a negative $380, indicating that more money was borrowed than was paid to creditors. Please note that this is a simplified calculation, and normally the interest paid should also be included if available.

Extra: Understanding Cash Flows: Cash flows in a business come from three main activities: operating, investing, and financing. The cash flow statement helps investors understand how a company's operations are running, where its money is coming from, and how it is being spent.

- Operating activities include the production, sales, and delivery of the company's product as well as collecting payment from its customers. This could include buying raw materials, building inventory, advertising, and shipping the product.

- Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.

- Financing activities include the inflow of cash from investors such as banks and shareholders, as well as the outflow of cash to shareholders as dividends as the company generates income. Other activities that impact the long-term liabilities and equity of the company are also included in this section.

The item we discussed, 'Cash Flow to Creditors', is part of the financing activities section of the cash flow statement. In the context of a classroom, a teacher might explain that this number is important because it shows how much the company is borrowing versus how much it's paying back, which can be an indicator of the company's financial strategy and stability. Companies that borrow more than they pay back are investing in growth, while companies that pay back more are in a phase of consolidation or returning value to creditors.