Data for the Patrick Swayze Company are presented in P14-5. Further analysis reveals the following:

1. Accounts payable pertain to merchandise suppliers.

2. All operating expenses except for depreciation were paid in cash.

\section*{Instructions}

(a) Prepare a statement of cash flows for Patrick Swayze Company using the direct method.

(b) Compute the following cash-basis ratios:
(1) Current cash debt coverage ratio.
(2) Cash return on sales ratio.
(3) Cash debt coverage ratio.