Arcadia Corporation Balance Sheet Assets Cash Accounts Receivable Inventories Land Equipment Les Accumulated Depreciation - Equipment Total 2021 109,500 123,000 270,000 106,500 390,000 (103,500) 895,500 2020 33 000 99,000 283,500 165,000 300,000 (63,000), 817,500 76 500 24.000 (13,500) (58,500) 90,000 (40,500) 78,000 0 0 (19,500) (75,000) 75.000 97,500 78,000 Liabilities and Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Total 51,000 225,000 321,000 298,500 895,500 70.500 300,000 246,000 201,000 817 500 . . . Additional information: 1. Net income for 2021 was $187,500 2 Cash dividends of $90,000 were declared and paid 3. Bonds payable amounting to $75,000 were retired through issuance of common stock 4. Land was sold for cost S. Equipment was purchased but no equipment was sold. Complete requirements and below. (6) Prepare a statement of cash flows for the year 2021 (16 points) Complete to the right of the balance sheet (b) Determine Arcadit Corporation's cument cash debt coverage ratio, cash debt coverage ratio, and free cash flow (10 points) Curent cash debt coverage ratio Net cash provided by operating activitie Average current abilities Cash debt coverage ratio Net cash provided by operating activitie Average total abilities Cash provided by opesating activities Les Capital expenditures Less Dividends Free cash flow Free cash flow + 116 - 1 The comparative balance sheets of Arcadia Corporation at the beginning and end of the year 2021 appear below Arcadia Corporation Balance Sheet 5 Ope 30 Assets Cash Accounts Receivable Inventories Land Equipment Less Accumulated Depreciation - Equipment Total 2021 109.500 123,000 270,000 106,500 390,000 (103500) 895,500 2020 33.000 99,000 283,500 165.000 300.000 (63,000) 817,500 11 1 12 Inve 76 500 24,000 (13,500) (58.500) 90.000 (40,500) 78,000 0 0 (19,500) (75,000) 75,000 97,500 78.000 3 10 Liabilities and Stockholders' Equity Accounts Payable Bonds Payable Common Stock Retained Earnings Total 59 51,000 225,000 321,000 298 500 895,500 70,500 300,000 246,000 201,000 817 500 20 10 24 31 10 14 35 Additional information 1 Net income for 2021 was $187.500 2. Cash dividends of $90,000 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 Complete requirements a and b below. (a) Prepare a statement of cash flows for the year 2021. (16 points) Complete to the right of the balance sheet (b) Determine Arcadia Corporation's curent cash debt coverage ratio, cash debt coverage ratio, and free cash flow (10 points) Current cash debt coverage ratio Ner cash provided by operating activite Average current liabilities Cash debx coverage ratio Netcash provided by operating activitie Average total abilities Free cash flow Cash provided by operating activities Less Capital expenditures Les Dividends Free cash flow 40 43
