Need help with accounting 101- 2 questions statement of cash flow
Please complete problem p12-7b and p12-8b
;Additional data: ;
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;1. Depreciation expense was $6,000. ;
;2. Dividends of $28,000 were declared and paid. ;
;3. During the year, equipment was sold for $10,000 cash. This equipment cost $13,000 ;
originally and had accumulated depreciation of $3,000 at the time of sale. ;
;4. Additional equipment was purchased for $8,000 cash. ;
Instructions ;
(a) Prepare a statement of cash flows using the indirect method. ;
(b) Compute these cash-based measures: ;
;(1) Current cash debt coverage. ;
;(2) Cash debt coverage. ;
;(3) Free cash flow. ;
*P12-8B Data for Filmore Company are presented in P12-7B. Further analysis reveals the ;following. ;
;1. Accounts payable pertains to merchandise creditors. ;
;2. All operating expenses except for depreciation are paid in cash. ;
;3. All depreciation expense is in the selling expense category. ;
;4. All sales and purchases are on account. ;
Instructions ;(a) Prepare a statement of cash flows using the direct method. ;
(b) Compute these cash-based measures: ;
;(1) Current cash debt coverage. ;
;(2) Cash debt coverage. ;
;(3) Free cash flow. ;
; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ;