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 Accounts receivable 75,100 $ 25,000 78,000 36,000 153,000 45,300 256,400 38,650 20,000 $ 375,100 $ 272,000 Inventory Property, plant, and equipment Accumulated depreciation Total assets Liabilities and Equity: Accounts payable Interest payable Wages payable Notes payable Common stock Retained earnings Total liabilities and equity $ 13,100 $ 11,000 11,500 8,000 9,000 8,100 104,700 90,500 147,200 $375,100 90,000 50,000 104,000 $ 272,000 Additional Information: 1. Net income for 2019 was $58,400. 2. Cash dividends of $15,200 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 $40,500 cash. 5. Depreciation expense was $18,350, and there were no disposals of equipment. 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 -28,350 X Adequacy ratio 0.49 X