Chapter 5, Problem 2UJ

To determine

Balance sheet: A statement that presents the financial position of the business in a specific period under the categories of asset, liabilities, and capital structure is termed balance sheet. It is a summary of the financial status of an organization. Users of the financial statements understand the working of the company with the help of a balance sheet.

(a)

To determine the formats for balance sheet used by C Company and P Company.

To determine

(b)

To determine the amount of working capital held by the companies in 2014.

To determine

(c)

To determine the growth rate in total assets and long-term debt.

To determine

(d)

To determine the trends in net cash provided by operating activities.

To determine

(e)

(1)

To compute: To compute the current cash debt coverage.

To determine

(e)

(2)

To compute: To compute the cash debt coverage.

To determine

(e)

(3)

To compute: To compute the free cash flow.