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Beckwith Products Comparative Balance Sheets For the Years Ended December 31, 2018 and 2019 1 2019 2018 2 Assets: 3 Cash $36.950.00 $25,000.00 4 Accounts

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Beckwith Products Comparative Balance Sheets For the Years Ended December 31, 2018 and 2019 1 2019 2018 2 Assets: 3 Cash $36.950.00 $25,000.00 4 Accounts receivable 75,100.00 78,000.00 45,300.00 36,000.00 256,400.00 153,000.00 38,650.00 20,000.00 $375,100.00 $272,000.00 5 Inventory 6 Property, plant, and equipment 7 Accumulated depreciation 8 Total assets 9 Liabilities and equity: 10 Accounts payable 11 Interest payable 12 Wages payable 13 Notes payable 14 Common stock $13,100.00 $11,000.00 11,500.00 8,000.00 8,100.00 9,000.00 105,000.00 90,000.00 100,000.00 50,000.00 137,400.00 104,000.00 15 Retained earings Total liabilities and equity 16 $375,100.00 $272,000.00 Additional Information: 1. Net income for 2019 was $58,400. 2. Cash dividends of $25,000 were declared and paid during 2019. 3. During 2019, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable. 4. Common stock was issued for $50,000 cash. 5. Depreciation expense was $18,650, and there were no disposals of equipment. 2. Compute the following cash-based performance measures: (a) free cash flow and (b) cash flow adequacy. (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000. Additional Instructions (a) Free cash flow -$53,050 Points: | 1/1 (6) Adequacy ratio 0.35 X Points: 0/1 Beckwith Products Comparative Balance Sheets For the Years Ended December 31, 2018 and 2019 1 2019 2018 2 Assets: 3 Cash $36.950.00 $25,000.00 4 Accounts receivable 75,100.00 78,000.00 45,300.00 36,000.00 256,400.00 153,000.00 38,650.00 20,000.00 $375,100.00 $272,000.00 5 Inventory 6 Property, plant, and equipment 7 Accumulated depreciation 8 Total assets 9 Liabilities and equity: 10 Accounts payable 11 Interest payable 12 Wages payable 13 Notes payable 14 Common stock $13,100.00 $11,000.00 11,500.00 8,000.00 8,100.00 9,000.00 105,000.00 90,000.00 100,000.00 50,000.00 137,400.00 104,000.00 15 Retained earings Total liabilities and equity 16 $375,100.00 $272,000.00 Additional Information: 1. Net income for 2019 was $58,400. 2. Cash dividends of $25,000 were declared and paid during 2019. 3. During 2019, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable. 4. Common stock was issued for $50,000 cash. 5. Depreciation expense was $18,650, and there were no disposals of equipment. 2. Compute the following cash-based performance measures: (a) free cash flow and (b) cash flow adequacy. (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000. Additional Instructions (a) Free cash flow -$53,050 Points: | 1/1 (6) Adequacy ratio 0.35 X Points: 0/1

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