A balance sheet shows beginning values of $56,300 for current liabilities and$289,200 for long-term debt.The ending values are $61,900 and $318,400, respectively.The income statement shows interest paid of $29,700 and dividends of $19,000.What is the amount of the net new borrowing?
A)$29,200
B)$40,450
C)$34,800
D)$70,150
E)$58,900

Question

Quizplus · Accepted Answer

Net new borrowing = (Ending long-term debt - Beginning long-term debt) + (Ending current liabilities - Beginning current liabilities)= ($318,400 - $289,200) + ($61,900 - $56,300)= $29,200

A Balance Sheet Shows Beginning Values of $56,300 for Current