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A comparative balance sheet for Grouper Corporation is presented as follows. December 31 Assets 2017 2016 Cash $ 109,230 $ 33,000 Accounts receivable 124,020 100,290
A comparative balance sheet for Grouper Corporation is presented as follows. December 31 Assets 2017 2016 Cash $ 109,230 $ 33,000 Accounts receivable 124,020 100,290 Inventories 271,020 284,790 Land 107,520 166,290 Equipment 391,020 301,290 Accumulated Depreciation-Equipment (104,520) (64,290) Total $898,290 $821,370 Liabilities and Stockholders' Equity Accounts payable $ 52,020 $71,790 Bonds payable 225,000 300,000 Common stock ($1 par) 321,000 246,000 Retained earnings 300,270 203,580 Total $898,290 $821,370 Additional information: 1. Net income for 2017 was $189,540. 2. Cash dividends of $92,850 were declared and paid. 3. Bonds payable amounting to $75,000 were retired through issuance of common stock. 4. Land was sold for cost. 5. Equipment was purchased but no equipment was sold. (a) Your answer is partially correct. Prepare a statement of cash flows for 2017 for Grouper Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) GROUPER CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 GROUPER CORPORATION Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation expense Decrease in Inventory Increase in Accounts Receivable Decrease in Accounts Payable Net Cash Provided by Operating Activities +A 104520 13770 23730 +A 19770 189540 74790 264330 Cash Flows from Investing Activities Sale of Land Purchase of Equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities Payment of Cash Dividends Net Cash Provided by Financing Activities Net Increase in Cash Cash at Beginning of Year Cash at End of Year 58770 89730 +A (30960) (92850) 140520 76230 216750 Issued common stock to retire bonds outstanding $ 141750 Determine Grouper Corporation's current cash debt coverage, cash debt coverage, and free cash flow. (Round current cash debt coverage and cash debt coverage to 2 decimal places, e.g. 0.67.) Current cash debt coverage Cash debt coverage Free cash flow Comment on its liquidity and financial flexibility Grouper has liquidity. Its financial flexiblity is
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