Hello. P12-7A Financial Accounting, Tools for Business Decision Making, Kimmel, Weygandt & Kieso, and 7th Edition

I Need B1-B2-B3 Complete. I believe I have the first part correct. The file is attached.

Instructor: Ingalls Date:

Course: BUA 201

Financial Accounting: Chapter 12 Homework P12-7A, Prepare a statement of cash flows?indirect method, and compute cash-based ratios.

Presented below are the financial statements of Kurtzel Company.

KURTZEL COMPANY

Comparative Balance Sheets

December 31

Assets

2014

2013

Cash

$35,000

$20,000

Accounts receivable

20,000

14,000

Inventory

28,000

20,000

Property, plant, and equipment

60,000

78,000

Accumulated depreciation

(32,000)

(24,000)

Total

$111,000

$108,000

Liabilities and Stockholders? Equity

Accounts payable

$19,000

$15,000

Income taxes payable

7,000

8,000

Bonds payable

17,000

33,000

Common stock

18,000

14,000

Retained earnings

50,000

38,000

Total

$111,000

$108,000

KURTZEL COMPANY

Income Statement

For the Year Ended December 31, 2014

Sales

Cost of goods sold

Gross profit

Selling expenses

Administrative expenses

Income from operations

Interest expense

Income before income taxes

Income tax expense

Net income $242,000

175,000

67,000

$18,000

6,000 24,000

43,000

3,000

40,000

8,000

$32,000 Additional data:

1. Depreciation expense was

$17,500

2. Dividends declared and paid were

$20,000

$8,500

cash. This equipment cost

3. During the year equipment was sold for

originally and had accumulated depreciation of

$9,500

at the time of sale. $18,000 Name:

Instructor: Ingalls Date:

Course: BUA 201 Instructions:

(a) Prepare a statement of cash flows using the indirect method. Cash flows from operating activities

Net income

Adjustments to reconcile net income to net cash

provided by operating activities

Depreciation

Increase in accounts payable

Decrease in income taxes payable

Increase in accounts feceivable

Increase in inventory

Net cash by operating activities $32,000 $17,500

4,000

(1,000)

(6,000)

(8,000) Cash flows from investing activities

Proceeds from sale of equipment 6,500

38,500 8,500 Cash flows from financing activities

Issuance of common stock

Redemption of bonds

Payment of cash dividends

Net cash used by financing activities 4,000

(16,000)

(20,000)

(32,000) Net cash flow

Cash at beginning of period

Cash at end of period 15,000

20,000

$35,000

Calculation here as desired

Calculation here as desired (b) (1) Compute the current cash debt coverage ratio.

Amount

Amount + Amount

= Times = ÷ Times Number

(b) (2) Compute the cash debt coverage ratio.

Amount

Amount + Amount ÷

Number (b) (3) Compute the free cash flow.

Amount - Amount - Amount = Amount

About this Question

Answered

Approved

Sep 13, 2020

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