1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marina86 [1]
3 years ago
13

During the year, Belyk Paving Co. had sales of $2,485,000. Cost of goods sold, administrative and selling expenses, and deprecia

tion expense were $1,349,000, $660,000, and $462,000, respectively. In addition, the company had an interest expense of $287,000 and a tax rate of 24 percent. The company paid out $412,000 in cash dividends. Assume that net capital spending was zero, no new investments were made in net working capital, and no new stock was issued during the year. (lgnore any tax loss or carryforward provision and assume interest expense is fully deductible.)
Calculate the firm's net new long-term debt added during the year. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Business
1 answer:
Afina-wow [57]3 years ago
6 0

Answer:

$888,000

Explanation:

In order to determine how much new debt was added, we must calculate cash flows:

first we need to determine net income:

sales ($2,485,000) - COGS ($1,349,000) - S&A expenses ($660,000) - depreciation expense ($462,000) = EBIT = $14,000

since EBIT is lower than interest expense ($14,000 ≤ $287,000), we can assume there was a loss. But the question tells us to ignore any tax losses. So net income = $14,000 - $287,000 = -$273,000

operating cash flow = net income + adjustments = -$273,000 + $462,000 = $189,000

there were not capital spending and no new investments made, so cash flow from investing activities = $0

so the net cash flow from assets = $189,000

net cash flow form assets = net cash flow from stockholders + net cash flow from liabilities

net cash flow from stockholders = common stock issued - dividends = $0 - $412,000 = -$412,000

$189,000 = -$412,000 + net cash flow from liabilities

$601,000 = net cash flow from liabilities

net cash flow from liabilities = net new long term debt - interest expense

$601,000 = net new long term debt - $287,000

net new long term debt = $601,000 + $287,000 = $888,000

You might be interested in
Which term below best describes a situation in which an hr manager conducts cost-benefit analyses to examine the impact of contr
sashaice [31]
<span>Outsourcing workforce analysis. Outsourcing has the potential of saving a company a significant amount of money on labour costs. By utilizing labour in countries with less stringent minimum wage and work hours laws, a company can increase output while decreasing labour costs.</span>
5 0
3 years ago
Suppose the mean income of firms in the industry for a year is 75 million dollars with a standard deviation of 17 million dollar
Readme [11.4K]

Answer and Explanation:

Given:

μ = 75 million

SD = 17 million

Probability (x) raw data = 110 million

Computation:

= Probability (x) < 110 million

= Probability [(x-μ) / SD] < [(110 - 75) / 17]

[(x-μ) / SD] = Z

= Probability [z] < [(35) / 17]

= Probability [z] < [2.05882353]

Using z calculator:

P-value from Z-Table:  

Z score = 0.98024

Therefore, probability is 0.98024

4 0
3 years ago
At its present rate of output, Barrel O' Biscuits, a perfectly competitive firm, finds that its marginal cost exceeds its margin
Delvig [45]

Answer: Reduce output

Explanation:

 According to the given question, the barrel O' Biscuits is one of the type of perfectly competitive organization in which its overall marginal cost increasing the company's marginal revenue.

 For maximizing the profit of an organization then we should reduce the output as in the perfect competition the company majorly affected the output only and for shift the overall marginal cost of the company we reducing the output.

 Therefore, Reduce output is the correct answer.      

 

3 0
3 years ago
What term defines the prescribed forms and practices of appropriate behavior?.
Anastaziya [24]

The term that defines the prescribed forms and practices of appropriate behavior is called etiquette.

<h3>What is etiquette?</h3>

Etiquette are behavior expected to be complied with people. It means acceptable standard of behavior in the society.

Hence, the term that defines the prescribed forms and practices of appropriate behavior is called etiquette.

Learn more about etiquette here : brainly.com/question/5718637

#SPJ1

4 0
1 year ago
While traveling on a commercial bus line, a passenger was injured when some luggage fell on him. As required by applicable state
Nonamiya [84]

Answer: See explanation

Explanation:

In a situation whereby the attorney of the passenger tried resolving the dispute in good faith, then the bus company must be ordered by the court to produce the report as well as the payment of reasonable cost that was incurred in making the motion.

It should however be noted that such cost may not be awarded when the movant had filed the motion before obtaining the disclosure in good faith. Also, the cost with be given when the nondisclosure response of the opposing party was justified.

7 0
3 years ago
Other questions:
  • Xavi develops a cell phone battery that can be charged by a solar panel and can run efficiently for up to three hours. His frien
    15·1 answer
  • George Hansen is General Manager for the Marigold Inn in Augusta, Georgia. Sharon Coombs is Restaurant and Food Services manager
    6·1 answer
  • Managers who establish effective goals can enhance the performance of their employees and of their company. The manager in the s
    15·1 answer
  • Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors ha
    15·2 answers
  • Oriole Company's Assembly Department has materials cost at $3 per unit and conversion cost at $7 per unit. There are 30300 units
    7·1 answer
  • What is the purpose of a continuing resolution?
    12·1 answer
  • Ruth Company showed the following balances at the end of its first year.
    6·1 answer
  • The Italy can produce 20 Gas turbines and 60 Tyres. France can produce 80 Gas turbines and 30 Tyres.
    13·1 answer
  • A data warehouse is one or more very large databases containing both detailed and summarized data for a number of years and from
    7·1 answer
  • In addition to major academic indicators, highly selective schools review:
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!