Please help with current cash debt coverage ratio and cash debt ratio AssetsCashAccounts receivableInventoryLandEquipmentAccumulated Depreciation-EquipmentTotalLiabilities and Stockholders' EquityAccounts payableBonds payableCommon stock ($1 par)Retained earningsTotalAdditional information:1.2.3.December 312020$72,88084,590182,59073,590262,590(71,590 )$604,650$36,590150,000214,000204,060$604,6502019$ 22,00068,710191,710112,710202,710(44,710)$553,130$ 49,710200,000164,000139,420$553,130Net income for 2020 was $130,180. No gains or losses were recorded in 2020.Cash dividends of $65,540 were declared and paid.Bonds payable amounting to $50,000 were retired through issuance of common stock.

Cash flows from operating activities:-Cash flow from operating activities is the cash inflows or cash outflows arising in normal course of business. It is primarily the principal revenue-producing activity of the entity and working capital adjustments needs to adjust under this section.If Increase in current asset or decrease in current liability - SubtractDecrease in current Asset or Increase in current liabilities - AddOperating Activities Net income $ 130,180Adjustments to reconcile net incomeDepreciation($71590-$44,710) $ 26,880Increase in accounts receivable ($84,590-$68,710) $ (15,880)Decrease in inventory ($182,590-$191,710) $ 9,120Decrease in accounts payable ($36,590-$49,710) $ (13,120)Net cash provided by operating activities $ 137,1801)Current Cash Debt Coverage Ratio =Net cash provided by operating activities / Average current liabilities=$137,180/43,150=3.179=3.18 (Rounded)Note:-Average current liabilities=(Accounts payable 2019 + Accounts payable 2020) / 2=($49,710+$36,590) / 2=$43,150 2)Cash Debt Coverage Ratio =Net cash provided by operating activities / Average total liabilities=$137,180/$218,150=0.63 TimesNote:-Average total liabilities=($49,710+$36,590+$150,000+$200,000) / 2=$218,1501)Current Cash Debt Coverage Ratio is 3.18 Times2)Cash Debt Coverage Ratio 0.63 Times