Data for the Sean Seymor Company are presented in P14-5A. Further analysis reveals the following: 1. Accounts
Question:
Data for the Sean Seymor Company are presented in P14-5A. Further analysis reveals the following:
1. Accounts payable pertains to merchandise creditors.
2. All operating expenses except for depreciation are paid in cash.
\section*{Instructions}
(a) Prepare a statement of cash flows 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.
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Related Book For
Financial Accounting
ISBN: 9780471169208
2nd Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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