Question

A comparative balance sheet for Orozco Corporation is presented below.

Additional information:
1. Net income for 2012 was $105,000.
2. Cash dividends of $40,000 were declared and paid.
3. Bonds payable amounting to $50,000 were retired through issuance of common stock.
Instructions
(a) Prepare a statement of cash flows for 2012 for Orozco Corporation.
(b) Determine Orozco Corporation’s current cash debt coverage ratio, cash debt coverage ratio, and free cash flow. Comment on its liquidity and financialflexibility.


Sales43
Views2551
Comments1
  • CreatedOctober 11, 2011
  • Files Included
Post your question
5000