During 2014, Raines Umbrella Corp. had sales of $666924. Cost of goods sold, administrative and selling...

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During 2014, Raines Umbrella Corp. had sales of $666924. Cost ofgoods sold, administrative and selling expenses, and depreciationexpenses were $478699, $91112, and $84397, respectively. Inaddition, the company had an interest expense of $91184 and a taxrate of 35 percent. (Ignore any tax loss carryback or carryforwardprovisions. This means that if the company does not have anytaxable income, they do not pay any tax.) Suppose Raines UmbrellaCorp. paid out $51718 in cash dividends. If spending on net fixedassets and net working capital was zero, and if no new stock wasissued during the year, what is the net new long-term debt?

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Calculation of the net new long term debt
Net new long term debt = Increase in total assets - Increase in current liabilities - Increase in retained earnings
Increase in total assets = $0
Increase in current liabilities = $0

Calculation of increase in retained earnings
Sales	$666,924.00
Less : Cost of goods sold	$478,699.00
Gross Margin	$188,225.00
Less : Selling and admin.expense	$91,112.00
Less : Depreciation Expense	$84,397.00
Net Operating Income	$12,716.00
Less : Interest Expense	$91,184.00
Profit before tax	-$78,468.00
Less : Tax @ 35%	$0.00
Net Income (loss)	-$78,468.00
Less : Dividend paid	$51,718.00
Increase in retained earnings	-$130,186.00

Net new long term debt = $0 - $0 - (-$1,30,186)
Net new long term debt = $1,30,186

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During 2014, Raines Umbrella Corp. had sales of $666924. Cost ofgoods sold, administrative and selling expenses, and depreciationexpenses were $478699, $91112, and $84397, respectively. Inaddition, the company had an interest expense of $91184 and a taxrate of 35 percent. (Ignore any tax loss carryback or carryforwardprovisions. This means that if the company does not have anytaxable income, they do not pay any tax.) Suppose Raines UmbrellaCorp. paid out $51718 in cash dividends. If spending on net fixedassets and net working capital was zero, and if no new stock wasissued during the year, what is the net new long-term debt?