Shown below and on the next page are comparative balance sheets for Padgett Company.
| PADGETT COMPANY | ||
| Assets | 2012 | 2011 |
| Cash | $ 68,000 | $ 22,000 |
| Accounts receivable | 88,000 | 76,000 |
| Inventory | 167,000 | 189,000 |
| Land | 80,000 | 100,000 |
| Equipment | 260,000 | 200,000 |
| Accumulated depreciation—equipment | (66,000) | (32,000) |
| Total | $597,000 | $555,000 |
| Liabilities and Stockholders” Equity | 2012 | 2011 |
| Accounts payable | $ 39,000 | $ 43,000 |
| Bonds payable | 150,000 | 200,000 |
| Common stock ($1 par) | 216,000 | 174,000 |
| Retained earnings | 192,000 | 138,000 |
| Total | $597,000 | $555,000 |
Additional information:
1. Net income for 2012 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 2012.
7. Land was sold for its book value.
Instructions
(a) Prepare a statement of cash flows for 2012 using the indirect method.
(b) Compute these cash-based ratios:
(1) Current cash debt coverage.
(2) Cash debt coverage.
Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…
TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…
Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…
you need to post your 2-page information flier to share with your Final Project Group.…
discussion: Discuss the methods used at your company to measure and ensure quality products and…