Preparing the Statement of Cash Flows Balance sheet information for Beckwith Products Company is presented below. Jan. 1 Dec. 31 Assets: Cash $25,000 $36,950 Accounts receivable 78,000 75,100 Inventory 36,000 45,300 Property, plant, and equipment 153,000 256,400 Accumulated depreciation 20,000 38,650 Total assets $272,000 $375,100 Liabilities and Equity: Accounts payable $11,000 $13,100 Interest payable 8,000 11,500 Wages payable 9,000 8,100 Notes payable 90,000 105,000 Common stock 50,000 100,000 Retained earnings 104,000 137,400 Total liabilities and equity $272,000 $375,100 Additional Information: Net income for the year was $58,400. Cash dividends of $25,000 were declared and paid during the year. During the year, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable. Common stock was issued for $50,000 cash. Depreciation expense was $18,650, and there were no disposals of equipment. Required: Question Content Area 1. Prepare a statement of cash flows (indirect method) for Beckwith Products. Use a minus sign to indicate any decreases in cash or cash outflows. Beckwith Products CompanyStatement of Cash FlowsFor the year ending December 31 Cash flows from operating activities: $- Select - Adjustments to reconcile net income to net cash flow from operating activities: $- Select - - Select - - Select - - Select - - Select - - Select - $- Select - Cash flows from investing activities: $- Select - - Select - Cash flows from financing activities: $- Select - - Select - - Select - - Select - Net cash provided by financing activities fill in the blank ada1f2f6505707e_29 $- Select - Cash, January 1 fill in the blank ada1f2f6505707e_32 Cash, Dec. 31 $fill in the blank ada1f2f6505707e_33 Question Content Area 2. Compute the following cash-based performance measures: Free cash flow Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000.) Round ratio to two decimal places. Enter negative values as negative numbers. Free cash flow $fill in the blank 23f73f09901401c_1 Adequacy ratio fill in the blank 23f73f09901401c_2 Check My Work1 more Check My Work uses remaining.
Preparing the Statement of Cash Flows Balance sheet information for Beckwith Products Company is presented below. Jan. 1 Dec. 31 Assets: Cash $25,000 $36,950 Accounts receivable 78,000 75,100 Inventory 36,000 45,300 Property, plant, and equipment 153,000 256,400 Accumulated depreciation 20,000 38,650 Total assets $272,000 $375,100 Liabilities and Equity: Accounts payable $11,000 $13,100 Interest payable 8,000 11,500 Wages payable 9,000 8,100 Notes payable 90,000 105,000 Common stock 50,000 100,000 Retained earnings 104,000 137,400 Total liabilities and equity $272,000 $375,100 Additional Information: Net income for the year was $58,400. Cash dividends of $25,000 were declared and paid during the year. During the year, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable. Common stock was issued for $50,000 cash. Depreciation expense was $18,650, and there were no disposals of equipment. Required: Question Content Area 1. Prepare a statement of cash flows (indirect method) for Beckwith Products. Use a minus sign to indicate any decreases in cash or cash outflows. Beckwith Products CompanyStatement of Cash FlowsFor the year ending December 31 Cash flows from operating activities: $- Select - Adjustments to reconcile net income to net cash flow from operating activities: $- Select - - Select - - Select - - Select - - Select - - Select - $- Select - Cash flows from investing activities: $- Select - - Select - Cash flows from financing activities: $- Select - - Select - - Select - - Select - Net cash provided by financing activities fill in the blank ada1f2f6505707e_29 $- Select - Cash, January 1 fill in the blank ada1f2f6505707e_32 Cash, Dec. 31 $fill in the blank ada1f2f6505707e_33 Question Content Area 2. Compute the following cash-based performance measures: Free cash flow Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000.) Round ratio to two decimal places. Enter negative values as negative numbers. Free cash flow $fill in the blank 23f73f09901401c_1 Adequacy ratio fill in the blank 23f73f09901401c_2 Check My Work1 more Check My Work uses remaining.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
-
Preparing the Statement of
Cash Flows Balance sheet information for Beckwith Products Company is presented below.Jan. 1 Dec. 31 Assets: Cash $25,000 $36,950 Accounts receivable 78,000 75,100 Inventory 36,000 45,300 Property, plant, and equipment 153,000 256,400 Accumulated depreciation 20,000 38,650 Total assets $272,000 $375,100 Liabilities and Equity: Accounts payable $11,000 $13,100 Interest payable 8,000 11,500 Wages payable 9,000 8,100 Notes payable 90,000 105,000 Common stock 50,000 100,000 Retained earnings 104,000 137,400 Total liabilities and equity $272,000 $375,100 Additional Information:
- Net income for the year was $58,400.
- Cash dividends of $25,000 were declared and paid during the year.
- During the year, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable.
- Common stock was issued for $50,000 cash.
- Depreciation expense was $18,650, and there were no disposals of equipment.
Required:
Question Content Area
Beckwith Products CompanyStatement of Cash FlowsFor the year ending December 311. Prepare a statement of cash flows (indirect method) for Beckwith Products. Use a minus sign to indicate any decreases in cash or
cash outflows. Cash flows from operating activities: $- Select - Adjustments to reconcile net income to net cash flow from operating activities: $- Select - - Select - - Select - - Select - - Select - - Select - $- Select - Cash flows from investing activities: $- Select - - Select - Cash flows from financing activities: $- Select - - Select - - Select - - Select - Net cash provided by financing activities fill in the blank ada1f2f6505707e_29 $- Select - Cash, January 1 fill in the blank ada1f2f6505707e_32 Cash, Dec. 31 $fill in the blank ada1f2f6505707e_33 Question Content Area
2. Compute the following cash-based performance measures:
Free cash flow - Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000.)
Round ratio to two decimal places. Enter negative values as negative numbers.
Free cash flow $fill in the blank 23f73f09901401c_1 Adequacy ratio fill in the blank 23f73f09901401c_2
Check My Work1 more Check My Work uses remaining.
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