Data for the Sean Seymor Company are presented in P13-5A. Further analysis reveals the following:

1. Accounts payable pertains to merchandise creditors.

2. All operating expenses except for depreciation are paid in cash.

\section*{Instructions}

(a) Prepare a statement of cash flows 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