PSA11.8 Here are the financial statements of Mountain King Tours Ltd Prepare a statement of casb lousdirect and indirect metbods-and calculate MOUNTAIN KING TOURS LTD cash-based ratios (LO3,5) Statement of financial position as at 31 December 2016 2016 2015 Assets Cash Accounts receivable Inventory $ 30000 S 13000 18000 14000 34000 35000 $ 78000 $ 70000 (30000) Equipment Less: Accumulated depreciation 40 000 (24000) 54000 $116000 Total $122 000 Liabilities and equity Accounts payable Income tax payable Debentures payable Share capital Retained earnings S 29 000 33000 15000 20000 15000 10000 30 000 25000 33000 28000 Total $122000 $116000 Required (a) Prepare a statement of cash flows using the direct method for operating cash flows (b) Prepare a reconciliation of profit and cash provided by operations. (c) Calculate these cash-based measures: 1. Current cash debt coverage. 2. Cash return on sales ratio. 3. Cash debt coverage. 4. Free cash flow. (d) Discuss the cash adequacy of XYZ Children's Centre Ltd, as revealed by the ratios calculated in part (c)