Question: Problem 2-17 Accounting Values versus Cash Flows [LO2] During 2018, Raines Umbrella Corp. had sales of $710,000. Cost of goods sold, administrative and selling expenses,

Problem 2-17 Accounting Values versus Cash Flows [LO2]

During 2018, Raines Umbrella Corp. had sales of $710,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $500,000, $125,000, and $170,000, respectively. In addition, the company had an interest expense of $60,000 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 $60,000 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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