create a cash flow statement from business tax returns and calculate the debt service coverage ratio

BAA For Paperwork Reduction Act Notice, see separate instructions. CPCA020508/22/19 9 Subtotal. Add lines 1 through 8 . See instructions for limitations. 10 Dividends from domestic corporations received by a small business CPCA0212 08/22/19 CPCAO234 08/22/19 (a) rercentage ownea = ana (D) Uwner s country - (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached - (a) Percentage owned and (b) Owner's country - (c) The corporation may have to file Form 5472, Information Return of a 25\% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached - 8 Check this box if the corporation issued publicly offered debt instruments with original issue discount If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 10 Enter the number of shareholders at the end of the tax year (if 100 or fewer) 1 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) If the corporation is filing a consolidated return, the statement required by Regulations section 1.150221(b)(3) must be attached or the election will not be valid. 12 Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on page 1 , line 29a.). Form 1120 (2019) SMITH ENTERPRISES, INC. 341234567 \begin{tabular}{|l|l} Schedule K| Other Information (continued from page 4) \end{tabular} Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 9 a Check all methods used for valuing closing inventory: (i) X cost (ii) (iii) Lower of cost or market b Check if there was a writedown of subnormal goods. c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970). d If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO. e If property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions...... YYes No f Was there any change in determining quantities, cost, or valuations between opening and BAA For Paperwork Reduction Act Notice, see instructions. Form 1125-A (Rev. 11-2018) Note: Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts. Part II Certain Individuals and Estates Owning the Corporation's Voting Stock. (Form 1120, Schedule K, Question 4b). Complete columns (1) through (iv) below for any individual or estate that owns directly 20% or more, or owns, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote (see instructions). Form 4562 (2019) SMITH ENTERPRISES, INC. 341234567 Page 2 Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, and property used for entertainment, recreation, or amusement.) Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24 a, 24b, Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who aren't more than 5% owners or related persons. See instructions. 42 Amortization of costs that begins during your 2019 tax year (see instructions): Part I Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft - Most Property Held More Than 1 Year (see instructions) \begin{tabular}{ll} & Calculate Cash Flows Available for Debt Servic \\ Cash Flow Work Sheet & Cash Flows from Operating Activities 1120, Page 1, Line 18 \\ Interest Expense \\ \hline & Total Cash Flows Available for Debt Service \end{tabular} *Verify your cash flow result by subtracting the end cash position from the beginning of year cash from line 1 of the Schedule L tax returns. Copyright(C) RMA \begin{tabular}{ll|lll} Line # & Item Name & Estimate & & \\ \hline dd & Gross sale price & & add & inflow \\ 10d & Gross sale price & add & inflow \\ 20 & Gross sale price & add & inflow \\ \hline & Total From 4797 Items & & \\ \hline \end{tabular} Copyright(c) RMA \begin{tabular}{|l|l|l|} \hline Line # & Item Name & Estimate \\ \hline 8 & Section 179 deduction & subtract \\ \hline 14 & Special depreciation allowance & subtract \\ \hline 19 & Basis for depreciation (total in column c) & subtract \\ \hline 20 & Basis for depreciation (total of column c) & subtract \\ \hline 26d & Cost or other basis listed* & subtract \\ \hline 27d & Cost or other basis listed* & subtract \\ \hline 42c & Amortized amount & subtract \\ \hline INT & New depreciable investments** & subtract \\ \hline & Assets Purchased & 0 \\ \hline \end{tabular} * Only if date placed in service is the current year **Only if assets were not included on the Schedule D Worksheet. Includes land. 22 Total depreciation expense 44 Total amortization expense Total Depreciation and Amortization Expense Copyright(c) RMA \begin{tabular}{ll} \hline Line # & Item Name \\ \hline 1(a+b),2,3 & Sales price (column d) \\ 8(a+b),9,10 & Sales price (column d) \\ INT & Purchase of securities* \\ INT & Other new nondepreciable property \end{tabular} Total Schedule D Items *See details of short-term securities purchases on Form 8949, Part I, column f for cost of securities purchased and sold in current year. Copyright@ RMA M-2 Reconciliation of beginning and ending retained earnings Copyright@ RMA *Do not include gains or losses on asset sales (asset sales are included on Form 4979 worksheet ** Do not included depreciation and amortization adjustments or domestic production activities deductions. This form reconciles income reported on the tax returns with income reported on financial statements. Copyright(c) RMA Copyright( Q) RMA Enter all EOY lines on the asset side as a negative number Enter all BOY lines on the liability and equity seide as a negative number BAA For Paperwork Reduction Act Notice, see separate instructions. CPCA020508/22/19 9 Subtotal. Add lines 1 through 8 . See instructions for limitations. 10 Dividends from domestic corporations received by a small business CPCA0212 08/22/19 CPCAO234 08/22/19 (a) rercentage ownea = ana (D) Uwner s country - (c) The corporation may have to file Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached - (a) Percentage owned and (b) Owner's country - (c) The corporation may have to file Form 5472, Information Return of a 25\% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached - 8 Check this box if the corporation issued publicly offered debt instruments with original issue discount If checked, the corporation may have to file Form 8281, Information Return for Publicly Offered Original Issue Discount Instruments. 10 Enter the number of shareholders at the end of the tax year (if 100 or fewer) 1 11 If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here (see instructions) If the corporation is filing a consolidated return, the statement required by Regulations section 1.150221(b)(3) must be attached or the election will not be valid. 12 Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on page 1 , line 29a.). Form 1120 (2019) SMITH ENTERPRISES, INC. 341234567 \begin{tabular}{|l|l} Schedule K| Other Information (continued from page 4) \end{tabular} Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Note: The corporation may be required to file Schedule M-3. See instructions. 9 a Check all methods used for valuing closing inventory: (i) X cost (ii) (iii) Lower of cost or market b Check if there was a writedown of subnormal goods. c Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970). d If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO. e If property is produced or acquired for resale, do the rules of section 263A apply to the entity? See instructions...... YYes No f Was there any change in determining quantities, cost, or valuations between opening and BAA For Paperwork Reduction Act Notice, see instructions. Form 1125-A (Rev. 11-2018) Note: Complete Form 1125-E only if total receipts are $500,000 or more. See instructions for definition of total receipts. Part II Certain Individuals and Estates Owning the Corporation's Voting Stock. (Form 1120, Schedule K, Question 4b). Complete columns (1) through (iv) below for any individual or estate that owns directly 20% or more, or owns, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote (see instructions). Form 4562 (2019) SMITH ENTERPRISES, INC. 341234567 Page 2 Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, and property used for entertainment, recreation, or amusement.) Note: For any vehicle for which you are using the standard mileage rate or deducting lease expense, complete only 24 a, 24b, Section C - Questions for Employers Who Provide Vehicles for Use by Their Employees Answer these questions to determine if you meet an exception to completing Section B for vehicles used by employees who aren't more than 5% owners or related persons. See instructions. 42 Amortization of costs that begins during your 2019 tax year (see instructions): Part I Sales or Exchanges of Property Used in a Trade or Business and Involuntary Conversions From Other Than Casualty or Theft - Most Property Held More Than 1 Year (see instructions) \begin{tabular}{ll} & Calculate Cash Flows Available for Debt Servic \\ Cash Flow Work Sheet & Cash Flows from Operating Activities 1120, Page 1, Line 18 \\ Interest Expense \\ \hline & Total Cash Flows Available for Debt Service \end{tabular} *Verify your cash flow result by subtracting the end cash position from the beginning of year cash from line 1 of the Schedule L tax returns. Copyright(C) RMA \begin{tabular}{ll|lll} Line # & Item Name & Estimate & & \\ \hline dd & Gross sale price & & add & inflow \\ 10d & Gross sale price & add & inflow \\ 20 & Gross sale price & add & inflow \\ \hline & Total From 4797 Items & & \\ \hline \end{tabular} Copyright(c) RMA \begin{tabular}{|l|l|l|} \hline Line # & Item Name & Estimate \\ \hline 8 & Section 179 deduction & subtract \\ \hline 14 & Special depreciation allowance & subtract \\ \hline 19 & Basis for depreciation (total in column c) & subtract \\ \hline 20 & Basis for depreciation (total of column c) & subtract \\ \hline 26d & Cost or other basis listed* & subtract \\ \hline 27d & Cost or other basis listed* & subtract \\ \hline 42c & Amortized amount & subtract \\ \hline INT & New depreciable investments** & subtract \\ \hline & Assets Purchased & 0 \\ \hline \end{tabular} * Only if date placed in service is the current year **Only if assets were not included on the Schedule D Worksheet. Includes land. 22 Total depreciation expense 44 Total amortization expense Total Depreciation and Amortization Expense Copyright(c) RMA \begin{tabular}{ll} \hline Line # & Item Name \\ \hline 1(a+b),2,3 & Sales price (column d) \\ 8(a+b),9,10 & Sales price (column d) \\ INT & Purchase of securities* \\ INT & Other new nondepreciable property \end{tabular} Total Schedule D Items *See details of short-term securities purchases on Form 8949, Part I, column f for cost of securities purchased and sold in current year. Copyright@ RMA M-2 Reconciliation of beginning and ending retained earnings Copyright@ RMA *Do not include gains or losses on asset sales (asset sales are included on Form 4979 worksheet ** Do not included depreciation and amortization adjustments or domestic production activities deductions. This form reconciles income reported on the tax returns with income reported on financial statements. Copyright(c) RMA Copyright( Q) RMA Enter all EOY lines on the asset side as a negative number Enter all BOY lines on the liability and equity seide as a negative number