Question

Prepare the unclassified balance sheet as it would appear at December 31, 2017. (List Assets in order of liquidity) SHAMROCK INC. Balance Sheet Assets Liabilities and Stockholders' Equity e Textbook and Media List of Accounts Compute Shamrock's free cash flow and current cash debt coverage for 2017. (Round current cash debt coverage to 2 decimal places, eg. 0.56. Show amounts that decrease cash flow with elthera - signes -15,000 or in parenthesis es (15,000) Free cash flow Current cash debt coverage

Answer 1

Shamrock Inc. Balance sheet December 31, 2017 Assets Cash Accounts Receivable Plant assets (net) ($36.900 + $9,000+ $16,600 - $6,700) Land ($16,400+ $19,700) Total Assets Liabilities and Stockholders' Equity Accounts Payable Bonds Payable ($8,600 + $9,000) Common Stock ($35,600 + $21,800) Retained Earnings ($31,000+ $26,000 - $8,200) Total Liabilities and Stockholders' Equity $29,500 $14.900 $55,800 $36,100 $136,300 $12.500 $17.600 $57,400 $48.800 $136,300 $26.000 Shamrock Inc. Statement of Cash Flows For year ended December 31, 2017 Cash flows from operating activities Net Income |Adjust to reconcile net income to Adjustments to reconcile net income to Net cash provided by operations: Depreciation Expenses Loss on sale of Investments Increase in Accounts receivable Decrease in Accounts Payable $6.700 $4.800 -$2.600 -$800 $8.100 $34.100 Net cash Provided by operating activities Cash flows from investing activities Sale of Investment Purchase of land Purchase of Plant assets Net cash Provided (Used) by investing activities $9.000 -$19,700 -$16,600 -$27,300 Cash flows from financing activities Issued of common stock Payment for cash dividends Net cash Provided (Used) by financing activities $21.800 -$8.200 $13.600 Net increase (decrease) in cash Add: Cash balance at December 31, 2016 Cash balance at December 31,2017 $20.400 $9.100 $29,500 Noncash investing and financing activities Plant assets purchased through issuance of $9,000 of bonds. Free cash flows = Net cash provided by operating activities - Capital Expenditure - Dividends = $34.100 - ($16.600 + $19,700) - $8.200 = -$10,400 Current cash debt coverage = Net cash provided by operating activities / Average current liabilities = $34.100 / [($13,300 + $12,500)/2] = $34,100 / $12,900 2.64 : 1