This is the financial position of Hospital AMIH, Inc. regarding the repayment of its debts. These are the most relevant data of its financial statements:Total revenues $ 245,000Total expenses $ 145,000Depreciation $ 10,000Changes in receivable accounts +$ 50,000Changes in inventory ($ 20,000)Changes in accounts payable ($ 25,000)Total current liabilities $ 30,000Total long-term debt $ 45,000Calculate Cash flow to total debt = revenues and gains in excess of expenses and losses + depreciation/current liabilities + long-term debt

Solution: Introduction: Cash flow to total debt ratio represents a business organization's flow of…

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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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This is the financial position of Hospital AMIH, Inc. regarding the repayment of its debts. These are the most relevant data of its financial statements:

Total revenues $ 245,000
Total expenses $ 145,000
Depreciation $ 10,000
Changes in receivable accounts +$ 50,000
Changes in inventory ($ 20,000)
Changes in accounts payable ($ 25,000)
Total current liabilities $ 30,000
Total long-term debt $ 45,000

Calculate Cash flow to total debt =

revenues and gains in excess of expenses and losses + depreciation/current liabilities + long-term debt

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