During 2018, Raines Umbrella Corp. had sales of $880,000. Cost
of goods sold, administrative and selling expenses, and
depreciation expenses were $675,000, $85,000, and $190,000,
respectively. In addition, the company had an interest expense of
$62,000 and a tax rate of 21 percent. (Ignore any tax loss
carryforward provisions and assume interest expense is fully
deductible.)
Suppose the company paid out $69,000 in cash dividends. If net
capital spending and net working capital was zero, and if no new
stock was issued during the year, what is the net new long-term
debt? (Do not round intermediate
calculations.)
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