Question
Part two Q3, No its not given. Cash dividends of $36,000 were declared and paid during 2016. Plant assets were purchased for cash and bonds
Part two Q3, No its not given.
Cash dividends of $36,000 were declared and paid during 2016. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi?annually on June 30 and December 31. Accounts payable relate to merchandise purchases. Required a. Calculate the change in cash that occurred during 2016.
b. Prepare a statement of cash flows using the indirect method.
c. Compute free cash flow.
d. Compute the operating?cash?flow?to?current?liabilities ratio. Round to two decimal points.
e. Compute the operating?cash?flow?to?capital?expenditures ratio. Round to two decimal points.
Liabilities and Stockholders Equity Accounts Payable $7,000 $10,000 Wages Payable 9,000 6,000 Income Tax Payable 6,000 7,000 Bonds Payable 141,000 75,000 Common Stock 90,000 90,000 Retained Earnings 86,000 59,000 Total Liabilities and Stockholders Equity$339,000 $247,000
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