During 2018, raines umbrella corp. had sales of $720,000. cost of goods sold, administrative and selling expenses, and depreciation expenses were $498,000, $125,000, and $105,000, respectively. in addition, the company had an interest expense of $58,000 and a tax rate of 21 percent. (ignore any tax loss carryforward provisions and assume interest expense is fully deductible.) suppose the company paid out $62,000 in cash dividends. if net capital spending 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.)

The company will need financing for 23,000

Explanation:

sales                                               720,000

COGS                          (498,000)

S&A expense               (125.000)

EBDIT                                                97,000

Interest expense                             (58,000)

After Interest                                     39,000

Cash Dividends                                (62,000)

Total Cash needed                            23,000

The company will need financing for 23,000

That's because the depreciation will not require a cash disbursement so, the company will not take debt to "pay" the depreciation.

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough