Spending on net fixed assets-net working capital was zero

Assignment Help Financial Management

Reference no: EM131297622

During 2014, Raines Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $90,000, and $150,000, respectively. In addition, the company had an interest expense of $89,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)

Suppose Raines Umbrella Corp. paid out $53,000 in cash dividends. Is this possible? If spending on net fixed assets 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.)

Net new long-term debt $

Reference no: EM131297622

Questions Cloud

Should we mount a massive effort to restore ecosystems : Should we mount a massive effort to restore ecosystems that we have degraded even though this will be quite costly? For this weeks environmental controversy we explore this question.

What is the maturity risk premium for two-year security : The real risk-free rate is 3%, and inflation is expected to be 2% for the next 2 years. A 2-year Treasury security yields 7.8%. What is the maturity risk premium for the 2-year security?

Calculate the thickness of the sio2 film : When one views the reflected wave, it is noted that complete destructive interference occurs at 600 nm and constructive interference occurs at 700 nm. Calculate the thickness of the SiO2 film.

Identify and discuss possible aspects of failure at process : new hardware and software releases keep being released, so the programmers took it upon themselves to rewrite most of the IT programs to take advantage of the new technology releases. It has taken about a year to program and reprogram the system. ..

Spending on net fixed assets-net working capital was zero : During 2014, Raines Umbrella Corp. had sales of $800,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $90,000, and $150,000, respectively. Suppose Raines Umbrella Corp. paid out $53,000 in cash di..

Who are its line workers and staff workers : Consider a company like Home Depot. Who are its line workers? Who are its staff workers?- Consider the internal control process required by the Sarbanes-Oxley Act.

Find centerline and control limits : Repeat the previous problem assuming that µ and σ are unknown and that we have collected 50 observations of sample size 10. These samples yielded a grand average of 0.734 V, an average si of 0.125 V, and an average Ri of 0.365 V.

Scholarly activity-research method : Most problems companies face are due to a lack of information; with complete and accurate information, the problems could be solved. Explore the topic of how research is conducted in organizations to address problems or issues. Then, select a comp..

Discuss what you want to talk about in each paragraph : MGMT 1100, Principles of Management - Discuss what you want to talk about in each paragraph (minimum of five (5) paragraphs). Ensure that ideas flow together and that the paper has a thesis. The thesis should be your evaluation of the situation or ..

User Account

All Pages