Question
1. Provided below are comparative BSs for Schmit Co. a.) Prepare a CFS for 2014. b) Compute 1)current cash debt coverage and 2) cash debt
1. Provided below are comparative BSs for Schmit Co.
a.) Prepare a CFS for 2014.
b) Compute
1)current cash debt coverage and
2) cash debt coverage Assets 2014
2013 Cash $68,000.00 $22,000.00
AR $88,000.00 $76,000.00
Inventory $167,000.00 $189,000.0
Land $80,000.00 $100,000.00
Equip $260,000.00 $200,000.00
Accum Depreciation-Equip $(66,000.00) $(32,000.00) T
otal $597,000.00 $555,000.00
Liabs and SHE AP $39,000.00 $43,000.00
Bonds Payable $150,000.00 $200,000.00
Common Stock ($1 par) $216,000.00 $174,000.00
Retained earnings $192,000.00 $138,000.00
Total $597,000.00 $555,000.00 Additional information:
Net Income for 2014 was $93,000 Depreciation exp was
$34,000 Cash dividends of $39,000 were declared and paid
Bonds payable of $50,00 were redeemed for cash
Common stock was issued for $42,000
No equipment was sold during 2014 Land was sold for its book value
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