Presented below are the financial statements of Kurtzel Company.

KURTZEL COMPANY Comparative Balance Sheets December 31

Assets 2014 2013 Cash $ 87,360 $ 49,920 Accounts receivable 49,920 34,944 Inventory 69,888 49,920 Property, plant, and equipment 149,760 194,688 Accumulated depreciation (79,872 ) (59,904 ) Total $277,056 $269,568

Liabilities and Stockholders Equity Accounts payable $ 47,424 $ 37,440 Income taxes payable 17,472 19,968 Bonds payable 42,432 82,368 Common stock 44,928 34,944 Retained earnings 124,800 94,848

Total $277,056 $269,568

KURTZEL COMPANY Income Statement For the Year Ended December 31, 2014

Sales revenue $604,032 Cost of goods sold 436,800 Gross profit 167,232 Selling expenses $44,928 Administrative expenses 14,976 59,904 Income from operations 107,328 Interest expense 7,488 Income before income taxes 99,840 Income tax expense 19,968 Net income $ 79,872

Additional data: 1. Depreciation expense was $43,680.

2. Dividends declared and paid were $49,920.

3. During the year equipment was sold for $21,216 cash. This equipment cost $44,928 originally and had accumulated depreciation of $23,712 at the time of sale.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

KURTZEL COMPANY Statement of Cash Flows For the Year Ended December 31, 2014

c) Compute these cash-based measures: (Round ratios to 2 decimal places, e.g. 2.56.)

(1) Current cash debt coverage. times

(2) Cash debt coverage. times

(3) Free cash flow.