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please help with this A Statement of Cash Flows is presented below for Steely Link Corporation. Calculate the Cash Coverage of Growth Ratio and the
please help with this
A Statement of Cash Flows is presented below for Steely Link Corporation. Calculate the Cash Coverage of Growth Ratio and the Free Cash Flows for this company. Steely Link Corporation Statement of Cash Flows For the year ending December 31, 2019 Solution for Scenario 1: Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid for selling and administrative expenses Cash paid for interest Cash paid for taxes Net Cash Flows Provided by Operating Activities $ 1,223,700 (591,345) (301,340) (4,260) (26,485) 300,270 Cash Coverage of Growth Ratio Definition: Particulars Amount 300,270 Cash Flows from Investing Activities: Proceeds from sale of long-term investment Purchase of heavy duty delivery truck Purchase of new steel storage warehouse Net Cash Flows Used for Investing Activities 67,900 (88,400) (273,350) (293,850) Question: In the yellow box below, briefly explain the implication of the calculated value of Steely Link's Cash Coverage of Growth Ratio: Cash Flows from Financing Activities: Proceeds from new note payable Payment of principal on bond payable Proceeds from issue of common stock shares Net Cash Flows Provided by Financing Activities 265,000 (41,350) 45,000 268,650 Free Cash Flows Calculation Formula: Net Cash Provided during year Beginning Cash at January 1, 2019 Ending Cash at December 31, 2019 275,070 1,853,908 $ 2,128,978Step by Step Solution
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