EDUUR CdlLuld UI Feedback Check My Work 1. Use proper form with company name, statement title, and date. Complete three sections for cash flows, operating, investing and financing. For operating activities, start with net income and consider any noncash items as well as gains or losses. Next, analyze the changes in the balance sheet accounts to determine their effect on cash. (Remember to restate the fund: accounting equation in terms of changes, separate the cash and noncash assets, and isolate the change in cash.) Finally, total to determine the net cash flow for operating assets. For investing activities, analyze the balance sheet changes and additional information for items that may be classified as an investing activity. Make T-accounts for any changes and determine if there was an associated inflow or cash for each account affected. For financing activities, analyze the balance sheet changes and additional information for items that may be classified as a financing activity. Make T-accounts for any changes and determine if there was an associated inflow or ou cash for each account affected. 2. Compute the following cash-based performance measures: a. Free cash flow b. Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000.) Round ratio to two decimal places. Enter negative values as negative numbers. Free cash flow $ -27,150 x Adequacy ratio 0.38 X 2019 2018 Assets: Cash Accounts receivable Inventory Property, plant, and equipment $ 36,950 75,100 45,300 256,400 38,650 $375,100 $ 25,000 78,000 36,000 153,000 20,000 $272,000 Accumulated depreciation Total assets Liabilities and Equity: Accounts payable Interest payable Wages payable Notes payable Common stock Retained earnings Total liabilities and equity $13,100 11,500 8,100 105,000 100,000 137,400 $375,100 $11,000 8,000 9,000 90,000 50,000 104,000 $272,000 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. Required