What was the net new long-term debt

Assignment Help Business Economics

Reference no: EM131197587

During 2015, Rainbow Umbrella Corp. had sales of $730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $500,000, $125,000, and $180,000, respectively. In addition, the company had an interest expense of $56,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.)

Suppose the company paid out $64,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what was the net new long-term debt? (Do not round intermediate calculations.)

Reference no: EM131197587

Questions Cloud

Monitoring employee usage of computing resources : Is it better to control employees' access to the Internet by blocking certain sites, and monitoring employee usage of computing resources, or to measure an employee’s performance in terms of productivity? What are possible repercussions, in terms of ..

Calculate hunt taxidermys tax liability : Hunt Taxidermy, Inc., is concerned about the taxes paid by the company in 2015. In addition to $43.1 million of taxable income, the firm received $3,035,000 of interest on state-issued bonds and $1,100,000 of dividends on common stock it owns in Oakd..

Considering stock investment in one of two firms : You are considering a stock investment in one of two firms (NoEquity, Inc., and NoDebt, Inc.), both of which operate in the same industry and have identical operating income of $27.5 million. NoEquity, Inc., finances its $50 million in assets with $4..

Explain why income would not be taxable : Explain why income would not be taxable. Give examples of what constitutes Non-Taxable Income. Explain how the income would be excluded and give any formulas or calculations used to show the Non-taxable portion. Also explain if and where you would re..

What was the net new long-term debt : During 2015, Rainbow Umbrella Corp. had sales of $730,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $500,000, $125,000, and $180,000, respectively. Suppose the company paid out $64,000 in cash dividends...

What is the expected return on the investment : As the Chief Investment Officer for "A Nyce Place to Work" you have been given the opportunity to invest in the Super-Tazer. It is a tazer, that when you push the button incapacitates everyone in a 10 foot radius of you. What is the expected return o..

After-tax cash flow from sale is same value : Suppose that ABC Company purchased $10000 of machinery 3 years ago. The machinery is 5-year MACRS property. The firm is selling this equipment today for $5000. What is the aftertax cash flow from this sale if the tax rate is 30%? After-tax cash flow ..

The firm had paid no cash? dividend : Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year? Blazo's common stock was selling for ?$17.95 but by year end it was only ?$15.28. If the firm paid a total cash dividend of $ 1.56 during the? year, what rat..

Liabilities plus owners equity before and after transaction : Explain briefly how each of the following transactions would affect a company's balance sheet. (Remember that assets must equal liabilities plus owners' equity before and after the transaction.)

User Account

All Pages