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45. Statement of cash flows ratios. Financial statements for Hilton Company are presented below: Hilton Company Balance Sheet December 31, 2012 Assets Liabilities and Stockholders'
45. Statement of cash flows ratios. Financial statements for Hilton Company are presented below: Hilton Company Balance Sheet December 31, 2012 Assets Liabilities and Stockholders' Equity Cash $40,000 Accounts payable $20,000 Accounts receivable 35,000 Bonds payable 50,000 Buildings and equipment 150,000 Common stock 65,000 Accumulated depreciation- Retained earnings 60.000 Buildings and equipment (50,000) $195.000 Patents 20.000 $195,000 Page 12 $60,000 $(16,000) 8,000 15,000 (6,000) 2.000 3,000 63,000 Hilton Company Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash providedoperating activities Increase in accounts receivable Increase in accounts payable Depreciation-buildings and equipment Gain on sale of equipment Amortization of patents Net cash provided by operating activities Cash flows from investing activities Sale of equipment Purchase of land Purchase of buildings and equipment Net cash used by investing activities Cash flows from financing activities Payment of cash dividend Sale of bonds Net cash provided by financing activities Net increase in cash Cash, January 1, 2012 Cash. December 31, 2012 12.000 (25.000) (48.000) (61,000) (15.000) 30.000 15,000 17,000 23.000 $40.000 At the beginning of 2012, Accounts Payable amounted to $12,000 and Bonds Payable was $20,000. Instructions Calculate the following for Hilton Company: a. Current cash debt coverage ratio b. Cash debt coverage ratio c. Free cash flow
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