Question: A comparative balance sheet for Riverbed Corporation is presented as follows. December 31 Assets 2020 2019 Cash $ 72,760 $ 22,000 Accounts receivable 83,040 67,280

A comparative balance sheet for Riverbed Corporation is presented as follows.

December 31

Assets

2020

2019

Cash $ 72,760 $ 22,000
Accounts receivable 83,040 67,280
Inventory 181,040 190,280
Land 72,040 111,280
Equipment 261,040 201,280
Accumulated Depreciation-Equipment (70,040 ) (43,280 )
Total $599,880 $548,840
Liabilities and Stockholders' Equity
Accounts payable $ 35,040 $ 48,280
Bonds payable 150,000 200,000
Common stock ($1 par) 214,000 164,000
Retained earnings 200,840 136,560
Total $599,880 $548,840

Additional information:

1. Net income for 2020 was $127,080. No gains or losses were recorded in 2020.
2. Cash dividends of $62,800 were declared and paid.
3. Bonds payable amounting to $50,000 were retired through issuance of common stock.

Determine Riverbed Corporations current cash debt coverage, cash debt coverage, and free cash flow. (Round current cash debt coverage and cash debt coverage to 2 decimal places, e.g. 0.67.)

Current cash debt coverage :1
Cash debt coverage :1
Free cash flow

$

Comment on its liquidity and financial flexibility.

Riverbed has poor/excellent liquidity. Its financial flexibility is good/bad

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