E5-12 (Preparation of a Balance Sheet) Presented below is the trial balance of Vivaldi Corporation at ier E5-16 (Preparation of a Statement of Cash Flows) A comparative balance sheet for Orozco Corporation is presented below. December 31 Assets 20122011 Cash $63,000$22,000 Accounts receivable 82,00066,000 Inventory 180,000189,000 Land 71,000 110,000 Equipment 270,000 200,000 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 199,000134,000 Total $597,000$545,00 Additional information: 1. Net income for 2012 was $105,000. 2. Cash dividends of $40,000 were declared and paid. 3 . Bonds payable amounting to $50,000 were retired through issuance of common stock. Instructions (a) Prepare a statement of cash flows for 2012 for Orozco Corporation. (b) Determine Orozco Corporation's current cash debt coverage ratio, cash debt coverage ratio, and free cash flow. Comment on its liquidity and financial flexibility E5-12 (Preparation of a Balance Sheet) Presented below is the trial balance of Vivaldi Corporation at ier E5-16 (Preparation of a Statement of Cash Flows) A comparative balance sheet for Orozco Corporation is presented below. December 31 Assets 20122011 Cash $63,000$22,000 Accounts receivable 82,00066,000 Inventory 180,000189,000 Land 71,000 110,000 Equipment 270,000 200,000 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 199,000134,000 Total $597,000$545,00 Additional information: 1. Net income for 2012 was $105,000. 2. Cash dividends of $40,000 were declared and paid. 3 . Bonds payable amounting to $50,000 were retired through issuance of common stock. Instructions (a) Prepare a statement of cash flows for 2012 for Orozco Corporation. (b) Determine Orozco Corporation's current cash debt coverage ratio, cash debt coverage ratio, and free cash flow. Comment on its liquidity and financial flexibility