Accounting 200: Comprehensive Homework 3 Part 5 Statement of Cash Flows

Accounting 200
Comprehensive Homework 3

Part 5: Statement of Cash Flows
1) Fill in the table:
Indicate if it is an increasing or decreasing transaction with a plus or minus sign.
Indicate if it is operating (O), financing (F) or investing activity (I). +/- O, F, I
Cash collection of accounts receivable 340,000
Cash collection of interest revenue 12,500
Cash collection of dividend revenue 10,500
Cash proceeds from sale of equipment 12,000
Cash proceeds from sale of common stock 52,000
Cash payment of dividends 2,500
Cash payment for inventory 120,630
Cash payment for expenses 61,650
Cash payment for wages 45,250
Cash payment for interest expense 925
Cash payment for purchase of equipment 25,250
Cash payment for repayment of debt 15,000
2) Use the information in the table above, prepare a Statement of Cash Flows using the direct method (list the transaction and the amount under each section. Be sure to indicate if it is increasing or decreasing (+ or -).).
3) Calculate the Current Cash Debt Coverage Ratio and the Cash Debt Coverage Ratio for this company using the Statement of Cash Flows prepared above.
Additional information: the beginning balance of current liabilities is $70,000 and the ending balance of current liabilities is $67,000; the beginning balance of total liabilities is $520,000 and the ending balance of total liabilities is $620,000.
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