Financial Position and Statement of Cash Flows Net inco purchas Additional information: 1. Net income for 2019 was 105,000. Instru 2 Cash dividends of 40,000 were declared and paid. 3. Bonds payable amounting to 50,000 were retired through issuance of ordinary shares. a. P b. C Instructions a. Prepare a statement of cash flows for 2019 for Orozco AG b. Determine Orozco's current cash debt coverage, cash debt coverage, and free cashflow. Comment on its liquidity and financial flexibility. ES.17 (LO1,2,3) (Preparation of a Statement of Cash Flows and a Statement of Financial Position) Chekov Corporation's statement of financial position at the end of 2018 included h following items. Pro P5.1 Bonds payable Current liabilities Share capital-ordinary Retained earnings $100,000 150,000 180,000 44,000 $474,000 30,000 120,000 90,000 (30,000) (11,000) 40,000 235,000 Pres Land Buildings Equipment Accum. depr.-buildings Accum. depr.-equipment Patents Current assets Total Total $474,000 The following information is available for 2019. 1. Net income was $55,000. 2. Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $9,000. 3. Depreciation expense was $4,000 on the building and $9,000 on equipment. 4. Patent amortization was $2,500. S. Current assets other than cash increased by $25,000. Current liabilities increased by $13,000. 6. An addition to the building was completed at a cost of $27,000. 7. A long-term investment in debt securities was purchased for $16,000. 8. Bonds payable of $50,000 were issued. 9. Cash dividends of $25,000 were declared and paid. 10. Treasury shares were purchased at a cost of $11,000. Instructions (Show only totals for current assets and current liabilities.) a. Prepare a statement of cash flows for 2019 b. Prepare a statement of financial position at December 31, 2019. ES.18 (LO3,4) (Preparation of a Statement of Cash Flows, Analysis) The comparative statements of financial position of Menachem NV at the beginning and end of the year 2019 appear below. Menachem NV Statements of Financial Tosition Assets