Question 5 of 5 View Policies Show Attempt History Current Attempt in Progress Tamarisk Inc. had the following balance sheet at December 31, 2019. TAMARISK INC. BALANCE SHEET DECEMBER 31, 2019 Cash $ 25,140 Accounts payable $ 35,140 Accounts receivable 26,340 Bonds payable 46,140 Investments 32,000 Common stock 105.140 Plant assets (net) 86,140 Retained earnings 28.340 Land 45,140 $ 214,760 $ 214,760 During 2020, the following occurred. 1. Tamarisk liquidated its available-for-sale debt investment portfolio at a loss of $ 10,140. 2. A tract of land was purchased for $ 43,140. 3. An additional $ 30,000 in common stock was issued at par. 4. Dividends totaling $ 15,140 were declared and paid to stockholders. 5. Net income for 2020 was $ 40,140, including $ 17,140 in depreciation expense. 6. Land was purchased through the issuance of $ 35,140 in additional bonds. 7. At December 31, 2020, Cash was $ 75,340, Accounts Receivable was $ 47,140, and Accounts Payable was $ 45,140. TAMARISK INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 40140 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 17140 Increase in Accounts Receivable (20800) Increase in Accounts Payable 10000 Loss on Sale of Investments 10140 16480 Net Cash Provided by Operating Activities 56620 Net Cash Provided by Operating Activities 56620 Cash Flows from Investing Activities Sale of Investments 21860 Purchase of Land (43140) Net Cash Used by Investing Activities (21280) Cash Flows from Financing Activities Issuance of Common Stock 30000 Payment of Cash Dividends (15140) Net Cash Provided by Financing Activities 14860 Net Increase in Cash 50200 Net Increase in Cash 50200 Cash at Beginning of Year 25140 Cash at End of Year $ 75340 Noncash Investing and Financing Activities Land purchased through issuance of $ 35140 of bonds TAMARISK INC. Balance Sheet December 31, 2020 Assets Cash $ 75340 Accounts Receivable 47,140 Plant Assets 69,000 Land 123,420 $ 314,900 Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Accounts Payable $ 45,140 Bonds Payable 81.280 Common Stock 135,140 Retained Earnings 53,340 $ 314,900 (c) Compute Tamarisk's free cash flow and current cash debt coverage for 2020. (Round current cash debt coverage to 2 decimal places, e.g. 0.56. Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Free cash flow $ Current cash debt coverage :1 List of Accounts