During the year, Belyk Paving Co. had sales of $2,387,000. Cost of goods sold, administrative and...

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During the year, Belyk Paving Co. had sales of $2,387,000. Costof goods sold, administrative and selling expenses, anddepreciation expense were $1,438,000, $436,300, and $491,300,respectively. In addition, the company had an interest expense of$216,300 and a tax rate of 40 percent (ignore any tax losscarryback or carryforward provisions.). The company paid out$384,000 in cash dividends. Assume that net capital spending waszero, no new investments were made in net working capital, and nonew stock was issued during the year.

Calculate the firm's net new long-term debt added during theyear. (Do not round intermediate calculations and roundyour answer to the nearest whole number,e.g., 32.)

Net new long-term debt           $
(Anyone can help me with this, all the answers I found arewrong...)

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4.2 Ratings (843 Votes)

Particulars Amount Sales 2387000 COGS 1438000 Administrative Selling Expenses 436300 Depreciation 491300 EBIT 21400 Interest 216300 Taxable Income 194900 Taxes 40 0 Net Income 194900 The taxes are zero since we are ignoring any carryback or carryforward See Answer

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During the year, Belyk Paving Co. had sales of $2,387,000. Costof goods sold, administrative and selling expenses, anddepreciation expense were $1,438,000, $436,300, and $491,300,respectively. In addition, the company had an interest expense of$216,300 and a tax rate of 40 percent (ignore any tax losscarryback or carryforward provisions.). The company paid out$384,000 in cash dividends. Assume that net capital spending waszero, no new investments were made in net working capital, and nonew stock was issued during the year. Calculate the firm's net new long-term debt added during theyear. (Do not round intermediate calculations and roundyour answer to the nearest whole number,e.g., 32.) Net new long-term debt $(Anyone can help me with this, all the answers I found arewrong...)