Question

SCHMIT COMPANY Comparative Balance Sheets Dec-31 2014 2013 Assets Cash Accounts Receivable Inventory Land Equipment Accumulated depreciation- equipment Total 68.000 22.000 76.000 167.000 189.000 80.000 100.000 260.000 200.000 32.000 $597.000 555.000 88.000 66.000 2013 Liability and Stockholders Equity Accounts payable Bonds payable Common stock ($ 1par) Retained earnings 2014 39.000 S43.000 50.000 200.000 216.000 174.000 92.000 138.000 $ 597.000 555.000 Additional information 1 Nett income for 2014 was $93,000 2 Depreciation expense was $34,000 3 Cash dividends of $39,000 were declared and paid 4 Bonds payable amounting to $50,000 were redeemed for cash $50,000 5 Common stock was issued for $42,000 cash 6 No equipment was sold during 2014 7 Land was sold for its book value Instructions (a) Prepare a statement of cash flows of 2014 using the indirect method (b) Compute these cash-based ratios (1) Current cash debt coverage (2) Cash debt coverage

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Cashflow statement is comprise of three activites:

1. Cash generated from Operations

2. Cash from Investment activity

3. Cash from Financing activity

Following is CFS for the SCHMIT Company

(a) SCHMIT Company Statement of Cash Flows For the year ended 31.12.2014 Cashflow from Operating Activities Net Income Adjustment for: Depreciation in 93,000 34,000 34,000 Increase in trade receivable Decrease in In Decrease in Accounts payable 12,000 22,000 4,000 6,000 Cash generated from Operations 1,33,000 from Investment Activities Sale of Land Purchase of Equipment Net cashflow from investment activities 20,000 -60,000 40,000 from Financing Activities Redemption of bond Issue of common stock Dividend paid Net cash used in financing activities ble 50,000 42,000 39,000 -47,000 Net increase in Cash and Cash equivalents Cash balance at beginning of period Cash balance at end of period 46,000 22,000 68,000

Current cash debt coverage ratio is liquidity ratio that measures the relationship between net cash provided by operating activities and average current liability of the company

(b) current cash debt coverage Net cash provided by operating activities Average current liabilities 133000 (39000+43000V2 13

Add a comment
Know the answer?
Add Answer to:
SCHMIT COMPANY Comparative Balance Sheets Dec-31 2014 2013 Assets Cash Accounts Receivable Inventory Land Equipment Accumulated...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • MICHAELS COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2014 AND 2013 2014 2013 Cash $10,860...

    MICHAELS COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2014 AND 2013 2014 2013 Cash $10,860 $3,180 13,420 Accounts receivable 21,480 Short-term investments 21,350 31,200 Inventory 41,410 36,550 Prepaid rent Prepaid insurance Supplies 2,640 13,420 2,810 940 1,360 770 Land 124,560 172,800 Buildings Accumulated depreciation-buildings 350,170 350,170 (105,080) (88,410) Equipment 524,950 400,440 Accumulated depreciation-equipment (130,130) (113,160) 51,700 Patents 45,090 Total assets $911,470 $873,020 Accounts payable Income taxes payable Salaries and wages payable Short-term notes payable Long-term notes payable Bonds payable...

  • Ivanhoe Company Comparative Balance Sheets December 31 Assets 2017 2016 Cash Accounts receivable Inventory Land Equipment...

    Ivanhoe Company Comparative Balance Sheets December 31 Assets 2017 2016 Cash Accounts receivable Inventory Land Equipment Accumulated depreciation equipment Total Liabilities and Stockholders' Equity $ 156,536 202,576 384,434 184,160 598,520 (151,932) $1,374,294 $ 50,644 174,952 435,078 230,200 460,400 (73,664) $1,277,610 Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total $ 89,778 345,300 497,232 441,984 $1,374,294 $ 98,986 460,400 400,548 317,676 $1,277,610 Additional information: 1. Net income for 2017 was $214,086. 2. Depreciation expense was $78,268. 3. Cash dividends...

  • Spicer Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings...

    Spicer Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total 2017 2016 $ 45,000 58,000 142,000 21,000 130,000 200,000 68,000 50,000 151,450 15,280 145,000 200,000 (60,000) (40,000) 225,000 (45,000) (35,000) 155,000 $749,730 $676,000 Liabilities and Stockholders Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total $44,730 300,000 200,000 205,000 749,730 $676,000 $ 36,000 300,000 160,000 180,000 Additional information: 1. Operating expenses include depreciation expense of...

  • MARZANO COMPANY Comparative Balance Sheets December 31 Assets 2017 Cash $ 63,000 Accounts receivable 88,000 Inventory...

    MARZANO COMPANY Comparative Balance Sheets December 31 Assets 2017 Cash $ 63,000 Accounts receivable 88,000 Inventory 167,000 Land 80,000 Equipment 265,000 Accumulated depreciation-equipment (66,000) Total $597,000 Change 40,000 12.000 O, I or F Step #3 0 2016 $22,000 76,000 189,000 100,000 200,000 (32,000) $555,000 122,000) o (20, 000) I 65.000 I 34,000 0 0 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total $34,000 150,000 221,000 192,000 $597,000 $43,000 (9000) 200,000 (50,000) 174,000 (47,...

  • Can you show my how to write a statement of cash flows? Mine is messed up....

    Can you show my how to write a statement of cash flows? Mine is messed up. M M Chapter 12 Indirect Method E12-7 Prepare the statement of cash flows using the Indirect Method Comparative Balance Sheets 2017 2016 Change Assets 68,000 Cash 22,000 46,000 88,000 76,000 12000 Accounts receivable Anventory 167.000 189.000 (22.000 Hand 80,000 100,000 (10,000) Equipment 260.000 200.000 0.000 Accumulated depreciation equipm (66,000) (32,000) 34.000) Total 597.000 555,000 42.000 Liabilities and Stockholders' Equity 2,017 2016 Accounts payable 39.000...

  • A comparative balance sheet for Flint Corporation is presented as follows. Assets Cash Accounts receivable Inventory...

    A comparative balance sheet for Flint Corporation is presented as follows. Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total December 31 2020 2019 $ 72,810 $ 22,000 83,460 67,650 181,460 190,650 72,460 111,650 261,460 201,650 (70,460) (43,650) $601,190 $549,950 $ 35,460 150,000 214,000 201,730 $601,190 $ 48,650 200,000 164,000 137,300 $549,950 Additional information: 1. Net income for 2020 was $127,920. No gains...

  • A comparative balance sheet for Martinez Corporation is presented as follows. Assets Cash Accounts receivable Inventory...

    A comparative balance sheet for Martinez Corporation is presented as follows. Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total December 31 2020 2019 $ 72,900 $ 22,000 84,190 68,290 182,190 191,290 73,190 112,290 262,190 202,290 (71,190) (44,290) $603,470 $551,870 $ 36,190 $ 49,290 150,000 200,000 214,000 164,000 203,280 138,580 $603,470 $551,870 Additional information: 1. Net income for 2020 was $129,380. No gains or...

  • Vero Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable 2020 $63,000 85,000 170,000 75,000...

    Vero Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable 2020 $63,000 85,000 170,000 75,000 270,000 2019 $ 22,000 76,000 189,000 100,000 200,000 Inventory Land Equipment Accumulated depreciation-equipment Total $597,000 $555,000 Liabilities and Stockholders' Equity Accounts payable $ 39,000 $ 47,000 Bonds payable Common stock ($1 par) 150,000 216,000 192.000 200,000 174,000 134.000 Retained earnings Total $597,000 $555,000 Additional information: 1. Net income for 2020 was $93.000. 2. Cash dividends of $35,000 were declared and paid. 3. Bonds payable...

  • Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable...

    Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total December 31 2020 2019 $ 72,730 $ 22,000 84,480 68,750 182,480 191,750 73,480 112,750 262,480 202,750 (71,480) (44,750) $604,170 $553,250 $36,480 150,000 214,000 203,690 $604,170 $ 49,750 200,000 164,000 139,500 $553,250 Additional information: 1. Net income for 2020 was $129,960. No gains or losses were recorded in 2020. Cash dividends of $65,770 were declared and...

  • A comparative balance sheet for Monty Corporation is presented as follows. Assets Cash Accounts receivable Inventory...

    A comparative balance sheet for Monty Corporation is presented as follows. Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total December 31 2020 2019 $ 72,700 $ 22,000 83,780 68,080 181,780 191,080 72,780 112,080 261,780 202,080 (70,780) (44,080) $602,040 $551,240 $ 35,780 $ 49,080 150,000 200,000 214,000 164,000 202,260 138,160 $602,040 $551,240 Additional information: 1. Net income for 2020 was $128,560. No gains or...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT