Question
resented below are the financial statements of Kurtzel Company. KURTZEL COMPANY Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 35,385 $ 20,220 Accounts
resented below are the financial statements of Kurtzel Company. KURTZEL COMPANY Comparative Balance Sheets December 31 Assets 2014 2013 Cash $ 35,385 $ 20,220 Accounts receivable 20,220 14,154 Inventory 28,308 20,220 Property, plant, and equipment 60,660 78,858 Accumulated depreciation (32,352 ) (24,264 ) Total $112,221 $109,188 Liabilities and Stockholders Equity Accounts payable $ 19,209 $ 15,165 Income taxes payable 7,077 8,088 Bonds payable 17,187 33,363 Common stock 18,198 14,154 Retained earnings 50,550 38,418 Total $112,221 $109,188 KURTZEL COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue $244,662 Cost of goods sold 176,925 Gross profit 67,737 Selling expenses $18,198 Administrative expenses 6,066 24,264 Income from operations 43,473 Interest expense 3,033 Income before income taxes 40,440 Income tax expense 8,088 Net income $ 32,352 Additional data: 1. Depreciation expense was $17,692. 2. Dividends declared and paid were $20,220. 3. During the year equipment was sold for $8,594 cash. This equipment cost $18,198 originally and had accumulated depreciation of $9,604 at the time of sale. Compute these cash-based measures: (Round ratios to 2 decimal places, e.g. 2.56.) (2) Cash debt coverage. (3) Free cash flow.
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