Shown below and on the next page are comparative balance sheets for Padgett Company.

Additional information:1. Net income for 2012 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 2012.7. Land was sold for its book value.Instructions(a) Prepare a statement of cash flows for 2012 using the indirect method.(b) Compute these cash-based ratios:(1) Current cash debt coverage.(2) Cash debt coverage.

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PADGETT COMPANY Comparative Balance Sheets December 31 Assets 2012 2011 $ 22,000 $ 68,000 88,000 Cash Accounts receivable 76,000 189,000 100,000 Inventory Land Equipment Accumulated depreciation-equipment 167,000 80,000 260,000 200,000 (32,000) (66,000) Total $597,000 $555,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2012 2011 $ 39,000 $ 43,000 200,000 174,000 138,000 150,000 216,000 192,000 $597,000 $555,000