The comparative balance sheets for Beckwith Products Company are presented below.

Beckwith Products

Comparative Balance Sheets

For the Years Ended December 31, 2018 and 2019

1		2019	2018
2	Assets:
3	Cash	$36,950.00	$25,000.00
4	Accounts receivable	75,100.00	78,000.00
5	Inventory	45,300.00	36,000.00
6	Property, plant, and equipment	256,400.00	153,000.00
7	Accumulated depreciation	38,650.00	20,000.00
8	Total assets	$375,100.00	$272,000.00
9	Liabilities and equity:
10	Accounts payable	$13,100.00	$11,000.00
11	Interest payable	11,500.00	8,000.00
12	Wages payable	8,100.00	9,000.00
13	Notes payable	105,000.00	90,000.00
14	Common stock	100,000.00	50,000.00
15	Retained earnings	137,400.00	104,000.00
16	Total liabilities and equity	$375,100.00	$272,000.00

Additional Information:

1.	Net income for 2019 was $58,400.
2.	Cash dividends of $25,000 were declared and paid during 2019.
3.	During 2019, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable.
4.	Common stock was issued for $50,000 cash.
5.	Depreciation expense was $18,650, and there were no disposals of equipment.

	Required:
1.	Prepare a statement of cash flows (indirect method) for Beckwith Products for 2019.
2.	Compute the following cash-based performance measures: (a) free cash flow and (b) cash flow adequacy. (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000.

Labels and Amount Descriptions

Labels
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
December 31, 2019
For the year ended December 31, 2019
Amount Descriptions
Cash, 1/1/2019
Cash, 12/31/2019
Cash received from issuance of notes
Cash received from stock issue
Depreciation expense
Decrease in accounts receivable
Decrease in inventory
Decrease in wages payable
Equipment purchase
Increase in accounts payable
Increase in accounts receivable
Increase in inventory
Increase in interest payable
Increase in wages payable
Net cash provided by financing activities
Net cash used for financing activities
Net cash provided by investing activities
Net cash used for investing activities
Net cash provided by operating activities
Net cash used for operating activities
Net decrease in cash
Net increase in cash
Net income
Net loss
Payment of dividends
Repayment of long-term liabilities