Calculate the firm net new long-term debt added

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During the year, Belyk Paving Co. had sales of $2,320,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,300,000, $565,000, and $429,000, respectively. In addition, the company had an interest expense of $254,000 and a tax rate of 23 percent. The company paid out $379,000 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. (Ignore any tax loss or carryforward provision and assume interest expense is fully deductible.)

Problem 1: 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.)

Problem 2: What is the net new long-term debt?

Reference no: EM133012311

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