In the previous problem, suppose Raines Umbrella Corp. paid out $75,000 in cash dividends. Is this possible? If net capital spending and the change in net working capital were both zero, and if no new stock was issued during the year, what was the change in the firm’s long-term debt account?

Data from previous problem

During 2017, Raines Umbrella Corp. had sales of $809,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $549,000, $136,000, and $85,000, respectively. In addition, the company had an interest expense of $67,000 and a tax rate of 35 percent.