Problem $2-18$ Accounting Values versus Cash Flows $[$LO$2]$

During $2021,$ Raines Umbrella Corporation had sales of $$810,000.$ Cost of goods sold,

administrative and selling expenses, and depreciation expenses were $$580,000,$

$$90,000,$ and $$135,000,$ respectively. In addition, the company had an interest expense

of $$91,000$ 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 $$55,000$ in cash dividends. If net capital spending and

net working capital were both zero, and if no new stock was issued during the year, what

is the net new long$-$term debt? $($Do not round intermediate calculations.$)$

Net new long$-$term debt