Question

A balance sheet shows beginning values of $56,300 for current liabilities and$289,200 for long-term debt. The ending values are $61,900 and $318,400, respectively. The income statement shows interest paid of $29,700 and dividends of $19,000. What is the amount of the net new borrowing?

Answer 1

Answer:

The amount of net new borrowing is $29,200

Step-by-step explanation:

Net new borrowing =

Long term debt at the end - Long term debt at the start

= $318,400-289,200 = $29,200