1. Preparing the Statement of Cash Flows

   The comparative balance sheets for Beckwith Products Company are presented below.

   	2019		2018
   Assets:
   Cash	$ 36,950		$ 25,000
   Accounts receivable	75,100		78,000
   Inventory	45,300		36,000
   Property, plant, and equipment	256,400		153,000
   Accumulated depreciation	38,650		20,000
   Total assets	$ 375,100		$ 272,000
   Liabilities and Equity:
   Accounts payable	$ 13,100		$ 11,000
   Interest payable	11,500		8,000
   Wages payable	8,100		9,000
   Notes payable	105,200		90,000
   Common stock	91,200		50,000
   Retained earnings	146,000		104,000
   Total liabilities and equity	$375,100		$ 272,000

   Additional Information:

   1. Net income for 2019 was $58,400.
   2. Cash dividends of $16,400 were declared and paid during 2019.
   3. During 2019, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable.
   4. Common stock was issued for $41,200 cash.
   5. Depreciation expense was $18,850, and there were no disposals of equipment.

   Required:

   1. Prepare a statement of cash flows (indirect method) for Beckwith Products for 2019. Use a minus sign to indicate any decreases in cash or cash outflows.

   Beckwith Products Company
   Statement of Cash Flows
   For the Year Ended December 31, 2019 answers are below
   Cash flows from operating activities:
   Cash received from short-term notes Cash received from stock issue Net change in cash Net income Payment of dividends Repayment of long-term liabilities		$
   Adjustments to reconcile net income to net cash flow from operating activities:
   Cash received from short-term notes Cash received from stock issue Depreciation expense Net change in cash Net income Payment of dividends Repayment of long-term liabilities	$
   Cash received from short-term notes Cash received from stock issue Decrease in accounts receivable Net change in cash Net income Payment of dividends Repayment of long-term liabilities
   Cash received from short-term notes Cash received from stock issue Increase in inventory Net income Payment of dividends Repayment of long-term liabilities
   Cash received from short-term notes Cash received from stock issue Increase in accounts payable Net income Payment of dividends Repayment of long-term liabilities
   Cash received from short-term notes Cash received from stock issue Increase in interest payable Net income Payment of dividends Repayment of long-term liabilities
   Cash received from short-term notes Cash received from stock issue Decrease in interest payable Decrease in inventory Decrease in wages payable Repayment of long-term liabilities
   Net cash provided by operating activities			$
   Cash flows from investing activities:
   Decrease in accounts receivable Decrease in wages payable Depreciation expense Equipment purchase Equipment sale Increase in accounts payable		$
   Net cash used for investing activities
   Cash flows from financing activities:
   Cash received from issuance notes Decrease in wages payable Depreciation expense Increase in accounts payable Increase in interest payable Increase in inventory Net income		$
   Decrease in accounts receivable Decrease in wages payable Depreciation expense Increase in accounts payable Increase in interest payable Increase in inventory Repayment of long-term liabilities
   Cash received from stock issue Decrease in wages payable Depreciation expense Increase in accounts payable Increase in interest payable Increase in inventory Net income
   Decrease in accounts receivable Decrease in wages payable Depreciation expense Increase in accounts payable Increase in interest payable Increase in inventory Net income Payment of dividends
   Net cash provided by financing activities
   Decrease in wages payable Depreciation expense Increase in accounts payable Net change in cash Net income			$
   Cash, 1/1/2019
   Cash, 12/31/2019			$

   2. Compute the following cash-based performance measures:

   1. Free cash flow
   2. Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000).

   Use two decimal places for the adequacy ratio. Enter negative values as negative numbers.

   Free cash flow	$
   Adequacy ratio

   2)

2. Compute the following cash-based performance measures:

   1. Free cash flow
   2. Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000).

   Use two decimal places for the adequacy ratio. Enter negative values as negative numbers.

   Free cash flow	$
   Adequacy ratio