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A comparative balance sheet for Sage Corporation is presented as follows. December 31 Assets 2020 2019 Cash $ 72,730 $ 22,000 Accounts receivable 84,480 68,750

A comparative balance sheet for Sage Corporation is presented as follows.

December 31

Assets

2020

2019

Cash $ 72,730 $ 22,000
Accounts receivable 84,480 68,750
Inventory 182,480 191,750
Land 73,480 112,750
Equipment 262,480 202,750
Accumulated Depreciation-Equipment (71,480 ) (44,750 )
Total $604,170 $553,250
Liabilities and Stockholders' Equity
Accounts payable $ 36,480 $ 49,750
Bonds payable 150,000 200,000
Common stock ($1 par) 214,000 164,000
Retained earnings 203,690 139,500
Total $604,170 $553,250

Additional information:

1. Net income for 2020 was $129,960. No gains or losses were recorded in 2020.
2. Cash dividends of $65,770 were declared and paid.
3. Bonds payable amounting to $50,000 were retired through issuance of common stock.

Determine Sage Corporations 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 :1
Cash debt coverage :1
Free cash flow

$

Comment on its liquidity and financial flexibility.

Sage has poorexcellent liquidity. Its financial flexibility is badgood.

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