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Question: During 2015, Rainbow Umbrella Corp. had sales of $850,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $610,000, $125,000, and $155,000, respectively. In addition, the company had an interest expense of $57,000 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions.) Suppose the company paid out $63,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what was the net new long-term debt?

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