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Question
The comparative balance sheets for Gallup Company appear below:
Additional information:
1. Net income for the year ending December 31, 2012, was $20,000.
2. Cash dividends of $12,000 were declared and paid during the year.
3. Long-term investments that had a book value of $18,000 were sold for $13,000.
4. Sales for 2012 are $120,000.
Instructions
1. Prepare a statement of cash flows for the year ended December 31, 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 233 characters.
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