Exercise 11-47 (Algorithmic) Preparing the Statement of Cash Flows The comparative balance sheets for Beckwith Products Company are presented below. 2019 2018 Assets: Cash $ 36,950 $ 25,000 Accounts receivable 75,100 78,000 45,300 Inventory Property, plant, and equipment Accumulated depreciation 36,000 153,000 256,400 38,650 20,000 Total assets $ 375,100 $ 272,000 Liabilities and Equity: Accounts payable Interest payable $ 13,100 $ 11,000 11,500 8,000 8,100 9,000 Wages payable Notes payable Common stock 105,300 90,000 93,300 50,000 Retained earnings 143,800 104,000 Total liabilities and equity $375,100 $ 272,000 Additional Information: 1. Net income for 2019 was $58,400. Additional Information: 1. Net income for 2019 was $58,400 2. Cash dividends of $18,600 were declared and paid during 2019. 3. During 2019, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable. 4. Common stock was issued for $43,300 cash. 5. Depreciation expense was $18,950, and there were no disposals of equipment Required: 1. Prepare a statement of cash flows (Indirect method) for Beckwith Products for 2019. Use a minus sign to indicate any decreases in cash or cash outflows. Beckwith Products Company Statement of Cash Flows For the Year Ended December 31, 2019 Cash flows from operating activities: Net income 58.400 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense 19,150 X Decrease in accounts receivable 2,900 Increase in inventory 9,300 X Increase in accounts payable 2.100 Increase in interest payable 3.500 Decrease in wages payable 900 X 17,450 X Increase in accounts payable 2.100 3.500 900 X 17.450 X 75,8SO X 103.400 X 103.400 X Increase in interest payable Decrease in wages payable Net cash provided by operating activities Cash flows from investing activities: Equipment purchase Net cash used for investing activities Cash flows from financing activities: Cash received from Issuance notes Repayment of long-term liabilities Cash received from stock issue Payment of dividends Net cash provided by financing activities Net change in cash 50,000 35,000 X 42,900 X 18.400 X 39,800 X 11.950 25,000 Cash, 3/1/2019 36,950 Cash, 12/31/2019 2. Compute the following cash-based performance measures: a. Free cash flow b. Cash flow adequacy (Note: Assume that the average amount of debt maturing over the next 5 years is $85,000). Use two decimal places for the adequacy ratio. Enter negative values as negative numbers. Free cash flow 27,550 X Adequacy ratio 0.37 X