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Question
A comparative balance sheet for the Visser Corporation is presented below:
Additional information:
1. Net loss for 2012 is $15,000. Net sales for 2012 are $250,000.
2. Cash dividends of $9,000 were declared and paid in 2012.
3. Land was sold for cash at a loss of $5,000. This was the only land transaction during the year.
4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5. $12,000 of bonds were retired during the year at carrying (book) value.
6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000.
Instructions
1. Prepare a statement of cash flows for the year ended 2012 using the indirect method.
2. Compute the following cash based ratios:
a. Current cash debt coverage ratio
b. Cash debt coverage ratio
Answer
This answer is hidden. It contains 2 characters.
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