Question 4

Jia Inc. applies ASPE and had the following statement of financial position at the end of operations for 2013:

JIA INC. Statement of Financial Position December 31, 2013
Cash		$20,000		Accounts payable		$ 30,000
Accounts receivable		21,200		Notes payable		41,000
FV-NI investments		32,000		Common shares		100,000
Equipment (net)		81,000		Retained earnings		23,200
Land		40,000
		$194,200				$194,200

During 2014, the following occurred:

1.		Jia Inc. in a gain of $3,400 for the firm. At December 31, 2014, the remaining fair value sold some of its fair valuenet income investment portfolio for $24,000. This transaction resulted net income investments in the portfolio had fair value of $11,400 and original cost of $13,000. No investments were purchased in 2014.
2.		A tract of land was purchased for $18,000 cash.
3.		Long-term notes payable in the amount of $19,000 were retired before maturity by paying $19,000 cash.
4.		An additional $32,000 in common shares was issued.
5.		Dividends totalling $13,200 were declared and paid to shareholders.
6.		Net income for 2014 was $32,000 after allowing for depreciation of $12,000.
7.		Land was purchased through the issuance of $30,000 in bonds.
8.		At December 31, 2014, cash was $46,000; accounts receivable was $41,600; and accounts payable remained at $30,000.

1.	Free cash flow
2.	Current cash debt coverage ratio
3.	Cash debt coverage ratio