Prepare a Statement of Cash Flows for Mennan Company using the direct method of presentation.

Calculate the Cash Debt Coverage, Current Cash Debt Coverage and Free Cash Flow

2009 1. Condensed financial data of Mennan Company appear below: MENNAN COMPANY Comparative Balance Sheet December 31 2010 Assets Cash $ 61,000 Accounts receivable 75,000 Inventories 118,000 Prepaid expenses 21,000 Investments 100,000 Plant assets 325,000 Accumulated depreciation (65 000) Total $635.000 $ 35,000 53,000 132,000 25,000 75,000 250,000 (60.000) $510.000 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $ 98,000 24,000 120,000 275,000 118,000 $635.000 $ 75,000 24,000 160,000 170,000 81,000 $510.000 $470,000 MENNAN COMPANY Income Statement For the Year Ended December 31, 2010 Sales Less: Cost of goods sold $310,000 Operating expenses (excluding depreciation) 50,000 Depreciation expense 17 000 Income taxes 20.000 Interest expense 18 000 Loss on sale of plant assets 3,000 Net income 418,000 152.000 Additional information: 1. New plant assets costing $100,000 were purchased for cash in 2010 2. Old plant assets costing $25,000 were sold for $10,000 cash when book value was $13,000 3. Bonds with a face value of $40,000 were converted into $40,000 of common stock