Financial statements for Hilton Company are offered below:
Hilton Company Balance Sheet 31st December, 2012
Assets Liabilities & Stockholders' Equity Cash $ 40,000
Accounts payable $ 20,000
Accounts receivable 35,000
Bonds payable 50,000
Buildings and equipment 150,000
Common stock 65,000
Accumulated depreciation-
Retained earnings 60,000
buildings and equipment (50,000) $195,000
Patents 20,000 $195,000
Hilton Company Statement of Cash Flows For Year Ended 31st December, 2012 Cash flows from operating activities Net income $60,000 Adjustments to reconcile net income to net cash provided by operating activities:
Increase in accounts receivable $(16,000)
Increase in accounts payable 8,000
Depreciation-buildings and equipment 15,000
Gain on sale of equipment (6,000)
Amortization of patents 2,000 3,000
Net cash provided by operating activities 63,000
Cash flows from investing activities Sale of equipment 12,000
Purchase of land (25,000)
Purchase of buildings and equipment (48,000)
Net cash used by investing activities (61,000)
Cash flows from financing activities Payment of cash dividend (15,000)
Sale of bonds 30,000
Net cash provided by financing activities 15,000
Net increase in cash 17,000 Cash,
1st January, 2012 23,000 Cash,
31st December, 2012 $40,000
At the starting of 2012, Accounts Payable amounted to $12,000 and Bonds Payable was $20,000.
Evaluate the subsequent for Hilton Company: Current cash debt coverage ratio: Cash Debt coverage ratio: Free cash flow: