The comparative balance sheets for Russell Company appear below:
Additional information:
1. Net income for the year ending December 31, 2014, was $30,000.
2. Cash dividends of $12,000 were declared and paid during the year.
3. Stock investments that had a book value of $18,000 were sold for $13,000.
4. Sales for 2014 are $130,000.
Instructions
1. Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
2. Compute the following cash based ratios:
a. Current cash debt coverage
b. Cash debt coverage

Question

The comparative balance sheets for Russell Company appear below: 
 Additional information:
1. Net income for the year ending December 31, 2014, was $30,000.
2. Cash dividends of $12,000 were declared and paid during the year.
3. Stock investments that had a book value of $18,000 were sold for $13,000.
4. Sales for 2014 are $130,000.
Instructions
1. Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
2. Compute the following cash based ratios:
a. Current cash debt coverage
b. Cash debt coverage

Quizplus · Accepted Answer

The Answer of The comparative balance sheets for Russell Company appear below: 
 Additional information:
1. Net income for the year ending December 31, 2014, was $30,000.
2. Cash dividends of $12,000 were declared and paid during the year.
3. Stock investments that had a book value of $18,000 were sold for $13,000.
4. Sales for 2014 are $130,000.
Instructions
1. Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
2. Compute the following cash based ratios:
a. Current cash debt coverage
b. Cash debt coverage

The Comparative Balance Sheets for Russell Company Appear Below