Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cash Accounts receivable Investments Plant assets (net) Land During 2025, the following occurred. 1. 2. 3. 4. 5. 6. 7. (c) Blue Inc. Balance Sheet

Cash Accounts receivable Investments Plant assets (net) Land During 2025, the following occurred. 1. 2. 3. 4. 5. 6. 7. (c) Blue Inc. Balance Sheet December 31, 2024 $23,380 Accounts payable 24,580 Bonds payable 32,000 Common stock 84,380 Retained earnings 43,380 $207,720 Free cash flow $33,380 44,380 103,380 26,580 $207,720 Blue liquidated its available-for-sale debt investment portfolio at a loss of $8,380. A tract of land was purchased for $41,380. An additional $30,000 in common stock was issued at par. Dividends totaling $13,380 were declared and paid to stockholders. Net income for 2025 was $38,380, including $15,380 in depreciation expense. Land was purchased through the issuance of $33,380 in additional bonds. At December 31, 2025, Cash was $73,580, Accounts Receivable was $45,380, and Accounts Payable was $43,380. Compute Blue's free cash flow and current cash debt coverage for 2025. (Round current cash debt coverage to 2 decimal places, e.g. 0.62:1. Show amount that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Current cash debt coverage 3 :1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cash And Financial Management Study Text

Authors: Kaplan

1st Edition

9781839960529

More Books

Students also viewed these Accounting questions