Shown below and on the next page are comparative balance sheets for Matsui Company.
.png)
Additional information:
1. Net income for 2010 was $93,000.
2. Cash dividends of $35,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2010.
Instructions
(a) Prepare a statement of cash flows for 2010 using the indirect method.
(b) Compute these cash-basis ratios:
(1) Current cash debt coverage.
(2) Cash debtcoverage.