Question: Data for Filmore Company are presented in P12 7B Further analysis

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.
(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.

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  • CreatedApril 07, 2014
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