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Preparing the Statement of Cash Flows Balance sheet information for Beckwith Products Company is presented below. Additional Information: 1. Net income for the year was
Preparing the Statement of Cash Flows Balance sheet information for Beckwith Products Company is presented below. Additional Information: 1. Net income for the year was $58,400. 2. Cash dividends of $12,300 were declared and paid during the year. 3. During the year, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable. 4. Common stock was issued for $37,400 cash. 5. Depreciation expense was $18,550, and there were no disposals of equipment. 2. Compute the following cash-based performance measures: a. Free cash flow b. Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000 )
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