Concord Corp.'s income statement for the year ended December 31, 2020, had the following condensed information: Service
Question:
Concord Corp.'s income statement for the year ended December 31, 2020, had the following condensed information:
Service revenue $767,500
Operating expenses (excluding depreciation) $490,000
Depreciation expense 64,000
Unrealized loss on FVNI investments 4,500
Loss on sale of equipment 11,000 569,500
Income before income taxes 198,000
Income tax expense 55,000
Net income $143,000
There were no purchases or sales of trading (FV-NI) investments during 2020.
Concords statement of financial position included the following comparative data at December 31:
Prepare the operating activities section of the statement of cash flows using the direct method.
Assume that Concord Corp.'s current cash debt coverage ratio in 2019 was 4.5. Calculate the company's current cash debt coverage ratio in 2020.
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson