The Dakota Corporation prepared, for 2014 and 2013, the following balance sheet data:

2014 2013

Cash. $87,375 63,750

Available-for-sale securities (not cash equivalents) . 17,250 105,000

Accounts receivable 90,000 86,250

Merchandise inventory 187,500 163, 500

Prepaid insurance 1,125 1,500

Land, buildings, and equipment. 1,378,875 1,087,500

Accumulated depreciation. (558,750) (498, 750)

Total. $ 1, 203, 375 1,008,750

Accounts payable. 153,375 236, 250

Salaries payable. 18,750 26,250

Notes payable-bank(CURRENT) 37,500 150,000

Bonds payable. 375,000 0

Common stock 6000,000 6000,000

Retained earnings (deficit) 18,750 ( 3,750)

Total 1,203,375 1,008,750

Additional Information:

Sold available-for-sale securities (not cash equivalents) costing $87,750 for $90,000

Equipment costing $18,750 with a book value of $ 3,750 was sold for $4,500.

Issued 8% bonds payable at par, $375,000

Purchased new equipment for cash, $310,125

Paid cash dividends of $22,500 during the year.

Net income for 2014 was $45,000

Proceeds from the notes payable were used for operating purposes

Prepare a cash flow statement for Dakota Corporation for 2014, using the indirect method. Calculate the Cash Flow to Net Income and the Cash Flow Adequacy ratios.