Super stuck on this, please help me with this problem. Thankyou. Presented below are the financial statements of KurtzelCompany. KURTZEL COMPANY Comparative Balance Sheets December 31Assets 2014 2013 Cash $ 35,000 $ 20,000 Accounts receivable 20,00014,000 Inventory 28,000 20,000 Property, plant, and equipment60,000 78,000 Accumulated depreciation (32,000) (24,000) Total $111,000 $108,000 Liabilities and Stockholdersâ Equity Accountspayable $19,000 $15,000 Income taxes payable 7,000 8,000 Bondspayable 17,000 33,000 Common stock 18,000 14,000 Retained earnings50,000 38,000 Total $111,000 $108,000 KURTZEL COMPANY IncomeStatement For the Year Ended December 31, 2014 Sales revenue$242,000 Cost of goods sold 175,000 Gross Profit 67,000 Sellingexpenses $18,000 Administrative expenses 6,000 24,000 Income fromoperations 43,000 Interest expense 3,000 Income before income taxes40,000 Income tax expense 8,000 Net income $ 32,000 Additionaldata: 1. Depreciation expense was $17,500. 2. Dividends declaredand paid were $20,000. 3. During the year equipment was sold for$8,500 cash. This equipment cost $18,000 originally and hadaccumulated depreciation of $9,500 at the time of sale. Directions:(a) Prepare a statement of cash flows using the indirect method.(b) Compute these cash-based measures: (1) Current cash debtcoverage. (2) Cash debt coverage. (3) Free cash flow.
Super stuck on this, please help me with this problem. Thankyou. Presented below are the financial statements of KurtzelCompany. KURTZEL COMPANY Comparative Balance Sheets December 31Assets 2014 2013 Cash $ 35,000 $ 20,000 Accounts receivable 20,00014,000 Inventory 28,000 20,000 Property, plant, and equipment60,000 78,000 Accumulated depreciation (32,000) (24,000) Total $111,000 $108,000 Liabilities and Stockholdersâ Equity Accountspayable $19,000 $15,000 Income taxes payable 7,000 8,000 Bondspayable 17,000 33,000 Common stock 18,000 14,000 Retained earnings50,000 38,000 Total $111,000 $108,000 KURTZEL COMPANY IncomeStatement For the Year Ended December 31, 2014 Sales revenue$242,000 Cost of goods sold 175,000 Gross Profit 67,000 Sellingexpenses $18,000 Administrative expenses 6,000 24,000 Income fromoperations 43,000 Interest expense 3,000 Income before income taxes40,000 Income tax expense 8,000 Net income $ 32,000 Additionaldata: 1. Depreciation expense was $17,500. 2. Dividends declaredand paid were $20,000. 3. During the year equipment was sold for$8,500 cash. This equipment cost $18,000 originally and hadaccumulated depreciation of $9,500 at the time of sale. Directions:(a) Prepare a statement of cash flows using the indirect method.(b) Compute these cash-based measures: (1) Current cash debtcoverage. (2) Cash debt coverage. (3) Free cash flow.
