Exercise 12-8 Your answer is correct. Shown below are comparative balance sheets for Padgett Company. PADGETT COMPANY Comparative Balance Sheets December 31 Assets 2012 2011 Cash $ 24,480 $ 7,920 Accounts receivable 31,680 27,360 Inventory 60,120 68,040 Land 28,800 36,000 Equipment 93,600 72,000 Accumulated depreciation—equipment (23,760 ) (11,520 ) Total $214,920 $199,800 Liabilities and Stockholders’ Equity Accounts payable $ 14,040 $ 15,480 Bonds payable 54,000 72,000 Common stock ($1 par) 77,760 62,640 Retained earnings 69,120 49,680 Total $214,920 $199,800 Additional information: 1. Net income for 2012 was $33,480. 2. Depreciation expense was $12,240. 3. Cash dividends of $14,040 were declared and paid. 4. Bonds payable amounting to $18,000 were redeemed for cash $18,000. 5. Common stock was issued for $15,120 cash. 6. No equipment was sold during 2012. 7. Land was sold for its book value. (a) Prepare a statement of cash flows for 2012 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000)). (b) Compute these cash-based ratios: (Round ratios to 2 decimal places, e.g. 2.56.) (1) Current cash debt coverage. (2) Cash debt coverage. CLICK HERE TO GET THE ANSWER !!!! Exercise 12-8 Your answer is correct. Shown below are comparative balance sheets for Padgett Company. PADGETT COMPANY Comparative Balance Sheets December 31 Assets 2012 2011 Cash $ 24,480 $ 7,920 Accounts receivable 31,680 27,360 Inventory 60,120 68,040 Land 28,800 36,000 Equipment 93,600 72,000 Accumulated depreciation—equipment (23,760 ) (11,520 ) Total $214,920 $199,800 Liabilities and Stockholders’ Equity Accounts payable $ 14,040 $ 15,480 Bonds payable 54,000 72,000 Common stock ($1 par) 77,760 62,640 Retained earnings 69,120 49,680 Total $214,920 $199,800 Additional information: 1. Net income for 2012 was $33,480. 2. Depreciation expense was $12,240. 3. Cash dividends of $14,040 were declared and paid. 4. Bonds payable amounting to $18,000 were redeemed for cash $18,000. 5. Common stock was issued for $15,120 cash. 6. No equipment was sold during 2012. 7. Land was sold for its book value. (a) Prepare a statement of cash flows for 2012 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000)). (b) Compute these cash-based ratios: (Round ratios to 2 decimal places, e.g. 2.56.) (1) Current cash debt coverage. (2) Cash debt coverage. CLICK HERE TO GET THE ANSWER !!!!

Exercise 12-8

	Your answer is correct.

Shown below are comparative balance sheets for Padgett Company.

PADGETT COMPANY Comparative Balance Sheets December 31
Assets		2012			2011
Cash		$ 24,480			$ 7,920
Accounts receivable		31,680			27,360
Inventory		60,120			68,040
Land		28,800			36,000
Equipment		93,600			72,000
Accumulated depreciation—equipment		(23,760	)		(11,520	)
Total		$214,920			$199,800
Liabilities and Stockholders’ Equity
Accounts payable		$ 14,040			$ 15,480
Bonds payable		54,000			72,000
Common stock ($1 par)		77,760			62,640
Retained earnings		69,120			49,680
Total		$214,920			$199,800

Additional information:

1.		Net income for 2012 was $33,480.
2.		Depreciation expense was $12,240.
3.		Cash dividends of $14,040 were declared and paid.
4.		Bonds payable amounting to $18,000 were redeemed for cash $18,000.
5.		Common stock was issued for $15,120 cash.
6.		No equipment was sold during 2012.
7.		Land was sold for its book value.

(a) Prepare a statement of cash flows for 2012 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000, or in parenthesis e.g. (15,000)).

(b) Compute these cash-based ratios: (Round ratios to 2 decimal places, e.g. 2.56.)

(1) Current cash debt coverage.

(2) Cash debt coverage.

 

CLICK HERE TO GET THE ANSWER !!!!