Cash Accounts receivable Investments Plant assets (net) Land 1. 2. During 2025, the following occurred. 3. 4. 5. 6. 7. Blue Inc. Balance Sheet December 31, 2024 $23,380 Accounts payable 24,580 Bonds payable 32,000 Common stock 84,380 Retained earnings (c) 43,380 $207,720 $ 33,380 44,380 103,380 26,580 $207,720 Blue liquidated its available-for-sale debt investment portfolio at a loss of $8,380. A tract of land was purchased for $41,380. An additional $30,000 in common stock was issued at par. Dividends totaling $13,380 were declared and paid to stockholders. Net income for 2025 was $38,380, including $15,380 in depreciation expense. Land was purchased through the issuance of $33,380 in additional bonds. At December 31, 2025, Cash was $73,580, Accounts Receivable was $45,380, and Accounts Payable was $43,380. Compute Blue's free cash flow and current cash debt coverage for 2025. (Round current cash debt coverage to 2 decimal places, e.g. 0.62:1. Show amount that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).)

Cash Accounts receivable Investments Plant assets (net) Land 1. 2. During 2025, the following occurred. 3. 4. 5. 6. 7. Blue Inc. Balance Sheet December 31, 2024 $23,380 Accounts payable 24,580 Bonds payable 32,000 Common stock 84,380 Retained earnings (c) 43,380 $207,720 $ 33,380 44,380 103,380 26,580 $207,720 Blue liquidated its available-for-sale debt investment portfolio at a loss of $8,380. A tract of land was purchased for $41,380. An additional $30,000 in common stock was issued at par. Dividends totaling $13,380 were declared and paid to stockholders. Net income for 2025 was $38,380, including $15,380 in depreciation expense. Land was purchased through the issuance of $33,380 in additional bonds. At December 31, 2025, Cash was $73,580, Accounts Receivable was $45,380, and Accounts Payable was $43,380. Compute Blue's free cash flow and current cash debt coverage for 2025. (Round current cash debt coverage to 2 decimal places, e.g. 0.62:1. Show amount that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 32BE

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