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A comparative balance sheet for Shabbona Corporation is presented below. December 31 Assets 2014 2013 Cash $ 73,000 $ 22,000 Accounts receivable 82,000 66,000 Inventory

A comparative balance sheet for Shabbona Corporation is presented below. December 31 Assets 2014 2013 Cash $ 73,000 $ 22,000 Accounts receivable 82,000 66,000 Inventory 180,000 189,000 Land 71,000 110,000 Equipment 260,000 200,000 Accumulated Depreciation-Equipment (69,000 ) (42,000 ) Total $597,000 $545,000 Liabilities and Stockholders' Equity Accounts payable $ 34,000 $ 47,000 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings 199,000 134,000 Total $597,000 $545,000 Additional information: 1. Net income for 2014 was $125,000. 2. Cash dividends of $60,000 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2014 for Shabbona Corporation. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Shabbona Corporation Statement of Cash Flows For the Year Ended December 31, 2014 $ Adjustments to reconcile net income to $ $ Issued common stock to retire $ of bonds outstanding LINK TO TEXT Determine Shabbona Corporations current cash debt coverage ratio, cash debt coverage ratio, and free cash flow. (Round ratios to 2 decimal places., e.g. 0.67.) Current cash debt coverage ratio :1 Cash debt coverage ratio :1 Free cash flow $ Comment on its liquidity and financial flexibility. Shabbona has liquidity. Its financial flexibility is .

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