Question

In Problem 18, suppose Raines Umbrella Corp. paid out $ 34,000 in cash dividends. Is this possible? If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what was the change in the firm’s long- term debt account?
In Problem 18, During 2012, Raines Umbrella Corp. had sales of $ 630,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $ 470,000, $ 95,000, and $ 140,000, respectively. In addition, the company had an interest expense of $ 70,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)



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  • CreatedAugust 28, 2014
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