Data for Weller Company are presented in P12-7A. Further analysis reveals the Prepare a statement of cash following. flows—direct method, and compute cash-based ratios. 1. Accounts payable pertain to merchandise suppliers. (S@ono} 2. All operating expenses except for depreciation were paid in cash.

Instructions

(a) Prepare a statement of cash flows for Weller Company using the direct method.

(b) Compute these cash-basis measures:

(1) Current cash debt coverage ratio.

(2) Cash debt coverage ratio.

(a) Cash from operations

(3) Free cash flow. $33,500