Data for the Jim Carrey Company are presented in P12-5A. Further analysis re- veals the following. 1. Accounts payable pertains to merchandise creditors. 2. All operating expenses except for depreciation are paid in cash.

Instructions

(a) Prepare a statement ol cash Hows using the direct method.

(b) Compute the following cash-basis ratios.
( 1 ) Current cash debt coverage ratio.
(2) Cash return on sales ratio.
(3) Cash debt coverage ratio.
(4) Free cash How.