Preparing the Statement of Cash Flows Balance sheet information for Beckwith Products Company is presented below. Jan. 1 Dec. 31 Assets: Cash $25,000 $36,950 Accounts receivable 78,000 75,100 Inventory 36,000 45,300 Property, plant, and equipment 153,000 256,400 Accumulated depreciation 20,000 38,650 Total assets $272,000 $375,100 Liabilities and Equity: Accounts payable $11,000 $13,100 Interest payable 8,000 11,500 Wages payable 9,000 8,100 Notes payable 90,000 105,000 Common stock 50,000 100,000 Retained earnings 104,000 137,400 Total liabilities and equity $272,000 $375,100 Additional Information: Net income for the year was $58,400. Cash dividends of $25,000 were declared and paid during the year. During the year, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable. Common stock was issued for $50,000 cash. Depreciation expense was $18,650, and there were no disposals of equipment. Required: Question Content Area 1. Prepare a statement of cash flows (indirect method) for Beckwith Products. Use a minus sign to indicate any decreases in cash or cash outflows. Beckwith Products CompanyStatement of Cash FlowsFor the year ending December 31 Cash flows from operating activities: $- Select - Adjustments to reconcile net income to net cash flow from operating activities: $- Select - - Select - - Select - - Select - - Select - - Select - $- Select - Cash flows from investing activities: $- Select - - Select - Cash flows from financing activities: $- Select - - Select - - Select - - Select - Net cash provided by financing activities fill in the blank ada1f2f6505707e_29 $- Select - Cash, January 1 fill in the blank ada1f2f6505707e_32 Cash, Dec. 31 $fill in the blank ada1f2f6505707e_33 Question Content Area 2. Compute the following cash-based performance measures: Free cash flow Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000.) Round ratio to two decimal places. Enter negative values as negative numbers. Free cash flow $fill in the blank 23f73f09901401c_1 Adequacy ratio fill in the blank 23f73f09901401c_2 Check My Work1 more Check My Work uses remaining.

Preparing the Statement of Cash Flows Balance sheet information for Beckwith Products Company is presented below. Jan. 1 Dec. 31 Assets: Cash $25,000 $36,950 Accounts receivable 78,000 75,100 Inventory 36,000 45,300 Property, plant, and equipment 153,000 256,400 Accumulated depreciation 20,000 38,650 Total assets $272,000 $375,100 Liabilities and Equity: Accounts payable $11,000 $13,100 Interest payable 8,000 11,500 Wages payable 9,000 8,100 Notes payable 90,000 105,000 Common stock 50,000 100,000 Retained earnings 104,000 137,400 Total liabilities and equity $272,000 $375,100 Additional Information: Net income for the year was $58,400. Cash dividends of $25,000 were declared and paid during the year. During the year, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable. Common stock was issued for $50,000 cash. Depreciation expense was $18,650, and there were no disposals of equipment. Required: Question Content Area 1. Prepare a statement of cash flows (indirect method) for Beckwith Products. Use a minus sign to indicate any decreases in cash or cash outflows. Beckwith Products CompanyStatement of Cash FlowsFor the year ending December 31 Cash flows from operating activities: $- Select - Adjustments to reconcile net income to net cash flow from operating activities: $- Select - - Select - - Select - - Select - - Select - - Select - $- Select - Cash flows from investing activities: $- Select - - Select - Cash flows from financing activities: $- Select - - Select - - Select - - Select - Net cash provided by financing activities fill in the blank ada1f2f6505707e_29 $- Select - Cash, January 1 fill in the blank ada1f2f6505707e_32 Cash, Dec. 31 $fill in the blank ada1f2f6505707e_33 Question Content Area 2. Compute the following cash-based performance measures: Free cash flow Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000.) Round ratio to two decimal places. Enter negative values as negative numbers. Free cash flow $fill in the blank 23f73f09901401c_1 Adequacy ratio fill in the blank 23f73f09901401c_2 Check My Work1 more Check My Work uses remaining.

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 47E

See similar textbooks

Question Content Area

1. Prepare a statement of cash flows (indirect method) for Beckwith Products. Use a minus sign to indicate any decreases in cash or cash outflows.

Beckwith Products CompanyStatement of Cash FlowsFor the year ending December 31

Cash flows from operating activities:
	$- Select -
Adjustments to reconcile net income to net cash flow from operating activities:
	$- Select -
	- Select -
	- Select -
	- Select -
	- Select -
	- Select -
		$- Select -
Cash flows from investing activities:
	$- Select -
		- Select -
Cash flows from financing activities:
	$- Select -
	- Select -
	- Select -
	- Select -
Net cash provided by financing activities		fill in the blank ada1f2f6505707e_29
		$- Select -
Cash, January 1		fill in the blank ada1f2f6505707e_32
Cash, Dec. 31		$fill in the blank ada1f2f6505707e_33

Question Content Area

2. Compute the following cash-based performance measures:

Free cash flow
Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000.)

Round ratio to two decimal places. Enter negative values as negative numbers.

Free cash flow	$fill in the blank 23f73f09901401c_1
Adequacy ratio	fill in the blank 23f73f09901401c_2

Check My Work1 more Check My Work uses remaining.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

	Jan. 1	Dec. 31
Assets:
Cash	$25,000	$36,950
Accounts receivable	78,000	75,100
Inventory	36,000	45,300
Property, plant, and equipment	153,000	256,400
Accumulated depreciation	20,000	38,650
Total assets	$272,000	$375,100
Liabilities and Equity:
Accounts payable	$11,000	$13,100
Interest payable	8,000	11,500
Wages payable	9,000	8,100
Notes payable	90,000	105,000
Common stock	50,000	100,000
Retained earnings	104,000	137,400
Total liabilities and equity	$272,000	$375,100