Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. problem 2-17 accounting values versus cash flows [

Problem 2-17 Accounting Values versus Cash Flows [LO2] During 2018, Raines Umbrella Corp. had sales of...

90.2K

Verified Solution

Question

Finance

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

During 2018, Raines Umbrella Corp. had sales of $710,000. Costof goods sold, administrative and selling expenses, anddepreciation 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 losscarryforward provisions and assume interest expense is fullydeductible.)

   

Suppose the company paid out $60,000 in cash dividends. If netcapital spending and net working capital was zero, and if no newstock was issued during the year, what is the net new long-termdebt? (Do not round intermediatecalculations.)

Answer & Explanation Solved by verified expert
4.5 Ratings (885 Votes)
Operating Cash Flow Earnings before Interest and Taxes Income Tax Depreciation ExpenseOperating Cash Flow 85000 0    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

To make a phrase/words, solve the 18 application of derivatives below.  Then replace each numbered blank with...

Physics
1.2K views

5 A chemist mixes 75 0 g of an unknown substance at 96 5 C...

Physics
1.2K views

A block of mass m = 4.4 kg, moving on frictionless surface with a speed...

Geometry
1.2K views

26 In the figure below of right triangle ABC mzA 90 and mzB 30 If...

Basic Math
1.2K views

A person borrows 9000 and agrees to repay the loan in monthly installments over 5...

Basic Math
1.2K views

In 2012, the population of a city was 6.55 million. The exponential growth rate was...

Algebra
1.2K views

1 5 pts Let L R R2 be the linear transformation defined by L x...

Accounting
1.2K views

In an equipment acquisition proposal, MKBK Enterprises has worked out a deal on the interest...

Accounting
1.2K views

The journal entry of Salary payable. Cash account (Dr) to Wages Payable (Cr) Select one:...

Finance
1.2K views

What is the simple (undiscounted) payback period in years for a $100,000 project with expected...

Accounting
1.2K views

Problem 14-15 (Algo) Early extinguishment; effective interest [LO14-5] The long-term liability section of Twin Digital...

Accounting
1.2K views

the cost of normal spoilage are allocated to the units in the ending work in...