During the year, Belyk Paving Company had sales of $2,425,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,335,000, $635,000, and $450,000, respectively. In addition, the company had an interest expense of $275,000 and a tax rate of 25 percent. The company paid out $400,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.) Calculate the firm's net new long-term debt added during the year.
During the year, Belyk Paving Company had sales of $2,425,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,335,000, $635,000, and $450,000, respectively. In addition, the company had an interest expense of $275,000 and a tax rate of 25 percent. The company paid out $400,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (Ignore any tax loss carryforward provision and assume interest expense is fully deductible.) Calculate the firm's net new long-term debt added during the year.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...
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During the year, Belyk Paving Company had sales of $2,425,000. Cost of goods sold, administrative and selling expenses, and
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