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A comparative balance sheet for Pina Corporation is presented as follows. December 31 Assets 2025 2024 Cash $72,840 $22,000 Accounts receivable 84,300 68,460 Inventory 182,300 191,460 Land 73,300 112,460 Equipment 262,300 202,460 Accumulated depreciation-equipment (71,300) (44,460) Total $603,740 $552,380 Liabilities and Stockholders' Equity Accounts payable $36,300 $49,460 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings 203,440 138,920 Total $603,740 $552,380 Additional information: 1. Net income for 2025 was $129,600. No gains or losses were recorded in 2025. 2. Cash dividends of $65,080 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Determine Pina Corporation's current cash debt coverage, cash debt coverage, and free cash flow. (Round current cash debt coverage and cash debt coverage to 2 decimal places., e.g. 0.67:1. Show amount that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Current cash debt coverage Cash debt coverage Free cash flow Comment on its liquidity and financial flexibility. -3.92 :1 0.96 :1 38520 Pina has excellent liquidity. Its financial flexibility is good

A comparative balance sheet for Pina Corporation is presented as follows. December 31 Assets 2025 2024 Cash $72,840 $22,000 Accounts receivable 84,300 68,460 Inventory 182,300 191,460 Land 73,300 112,460 Equipment 262,300 202,460 Accumulated depreciation-equipment (71,300) (44,460) Total $603,740 $552,380 Liabilities and Stockholders' Equity Accounts payable $36,300 $49,460 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings 203,440 138,920 Total $603,740 $552,380 Additional information: 1. Net income for 2025 was $129,600. No gains or losses were recorded in 2025. 2. Cash dividends of $65,080 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Determine Pina Corporation's current cash debt coverage, cash debt coverage, and free cash flow. (Round current cash debt coverage and cash debt coverage to 2 decimal places., e.g. 0.67:1. Show amount that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Current cash debt coverage Cash debt coverage Free cash flow Comment on its liquidity and financial flexibility. -3.92 :1 0.96 :1 38520 Pina has excellent liquidity. Its financial flexibility is good

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A comparative balance sheet for Pina Corporation is presented as follows. December 31 Assets 2025 2024 Cash $72,840 $22,000 Accounts receivable 84,300 68,460 Inventory 182,300 191,460 Land 73,300 112,460 Equipment 262,300 202,460 Accumulated depreciation-equipment (71,300) (44,460) Total $603,740 $552,380 Liabilities and Stockholders' Equity Accounts payable $36,300 $49,460 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings 203,440 138,920 Total $603,740 $552,380 Additional information: 1. Net income for 2025 was $129,600. No gains or losses were recorded in 2025. 2. Cash dividends of $65,080 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock.
Transcribed Image Text:A comparative balance sheet for Pina Corporation is presented as follows. December 31 Assets 2025 2024 Cash $72,840 $22,000 Accounts receivable 84,300 68,460 Inventory 182,300 191,460 Land 73,300 112,460 Equipment 262,300 202,460 Accumulated depreciation-equipment (71,300) (44,460) Total $603,740 $552,380 Liabilities and Stockholders' Equity Accounts payable $36,300 $49,460 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings 203,440 138,920 Total $603,740 $552,380 Additional information: 1. Net income for 2025 was $129,600. No gains or losses were recorded in 2025. 2. Cash dividends of $65,080 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock.
Determine Pina Corporation's current cash debt coverage, cash debt coverage, and free cash flow. (Round current cash debt coverage and cash debt coverage to 2 decimal places., e.g. 0.67:1. Show amount that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Current cash debt coverage Cash debt coverage Free cash flow Comment on its liquidity and financial flexibility. -3.92 :1 0.96 :1 38520 Pina has excellent liquidity. Its financial flexibility is good
Transcribed Image Text:Determine Pina Corporation's current cash debt coverage, cash debt coverage, and free cash flow. (Round current cash debt coverage and cash debt coverage to 2 decimal places., e.g. 0.67:1. Show amount that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Current cash debt coverage Cash debt coverage Free cash flow Comment on its liquidity and financial flexibility. -3.92 :1 0.96 :1 38520 Pina has excellent liquidity. Its financial flexibility is good
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