Instructions: A) prepare a statement of cash flows for 2008 using the indirect method.

B) compute these cash-basis ratios:

1. Current cash debt coverage

2. Cash debt coverage

investing activites seullUll Here is a comparative Uti comparative E6-7 (Statement of Cash Flows, Analysis) Puffed Up Company Comparative Balance Sheet December 31 2008 Assets 63,000 Cash 85,000 Accounts receivable 170,000 Inventories 75,000 Land 270,000 Equipment (66,000) Accumulated depreciation $597,000 Total Liabilities and Stockholders' Equity 39,000 Accounts payable 150,000 Bonds payable 216,000 Common stock ($1 par) 192,000 Retained earnings $597,000 Total 2007 22,000 76,000 189,000 100,000 200,000 (32,000) $555,000 47,000 200,000 174,000 134,000 $555,000