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In 2015 Huge-Packing repurchased shares of common stock worth $5,241 million and made dividend payments of $894 million. Other financing activities raised $196 million, and Huge-Packing's total cash flow from financing was -$6,077 million. How much did the long-term debt accounts of Huge-Packing change?

A. increased $138 million

B. decreased $138 million

C. increased $836 million

D. decreased $836 million

Respuesta :

Answer:

correct option is B. decreased $138 million

Explanation:

given data

common stock = $5,241 million

dividend payments = $894 million

financing activities = $196 million

total cash flow = -$6,077 million

to find out

How much did the long-term debt accounts of Huge-Packing change

solution

we get here long-term debt that is express as

long-term debt = ( common stock + dividend - financing activity ) + total cash flow    ...................1

put here value we get

long term debt = ( $5241 + $894 - $196 ) + ( -$6077 )

long term debt = - $138 million

so correct option is B. decreased $138 million