Shown below and on the next page are comparative balance sheets for Schmitt Company.
1. Net income for 2014 was $93,000.
2. Depreciation expense was $34,000.
3. Cash dividends of $39,000 were declared and paid.
4. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
5. Common stock was issued for $42,000 cash.
6. No equipment was sold during 2014.
7. Land was sold for its book value.
(a) Prepare a statement of cash flows for 2014 using the indirect method.
(b) Compute these cash-based ratios:
(1) Current cash debt coverage.
(2) Cash debt coverage.