Data for Patrick Swayze Company are presented in P13-5. Further analysis reveals the following: 1. Accounts payable
Question:
Data for Patrick Swayze Company are presented in P13-5. Further analysis reveals the following:
1. Accounts payable pertain to merchandise suppliers.
2. All operating expenses except for depreciation were paid in cash.
\section*{Instructions}
(a) Prepare a statement of cash flows for Patrick Swayze Company using the direct method.
(b) Compute these cash-basis measures:
(1) Current cash debt coverage ratio
(2) Cash return on sales ratio
(3) Cash debt coverage ratio
(4) Free cash flow
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Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9780471169192
1st Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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