How much debt did I pay off this year?

Discussion in 'Accounting and Taxes' started by chaddock, Nov 16, 2018.

  1. chaddock

    chaddock
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    I needed some help in figuring out how I should view my debt stance now vs. Jan 1st.
    jan 1st 2018 company debt was at 300K which included a business loan, outstanding bill to vendors, credit card balances. At the same time, I had about $150,000 in outstanding invoices due to us and about $25,000 in our checking account. So we stood at a $125,000 cash flow negative at that point.

    Fast forward to today. We have more outstanding debt of today which sits at about 325k. $200,000 on credit cards, $75,000 left on the business loan and another $50,000 due to our suppliers. We do however have more outstanding ( $225,000 in outstanding invoices due to us) and $5,000 in the checking account. That puts us at a cash flow negative of $95,000, down $30,000.

    So my question comes to this. How much debt have I paid off?
    it seems like I have only paid off $30,000 because of my cash flow standing is just $30,000 less than the $125,000 I started with.
    Or am I looking at this wrong and I should not be factoring in my outstanding invoices and checking account balance from the beginning of the year ( Jan 1st. ). Should I just take todays figures of $325k in debt AND subtract my outstanding invoices and checking account total of $230,000 (325k minus 230k = $95,000) Meaning my debt today is $95,000 compared to the jan 1st debt of $300k which means I have paid down $205,000 in debt.

    So which is it. Have I paid down $205,000 or just $30,000?
     
  2. Chris_Tax

    Chris_Tax
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    The other relevent question is how much money did you put im savings this year. It is called budgetting.
     

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