Malouin Corp.'s income statement for the year ended December 31, 2020, had the following condensed information: Instructions
Question:
Malouin Corp.'s income statement for the year ended December 31, 2020, had the following condensed information:
Instructions
a. Prepare the operating activities section of the statement of cash flows using the direct method.
b. Assume that Malouin Corp.'s current cash debt coverage ratio in 2019 was 4.5. Calculate the company's current cash debt coverage ratio in 2020, and discuss the results from the perspective of a creditor.
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Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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