Firm new long-term debt


During the year, Belyk Paving Co. had sales of $2,395,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,430,000, $435,500, and $490,500, respectively. In addition, the company had an interest expense of $215,500 and a tax rate of 40 percent (ignore any tax loss carryback or carryforward provisions.). Belyk Paving Co. paid out $405,000 in cash dividends. Assume that no new investments were made in net fixed assets or net working capital, and no new stock was issued during the year.

Calculate the firm's new long-term debt added during the year.

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Finance Basics: Firm new long-term debt
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