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ACC- Beneteau Company Problem

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Question;The comparative balance sheets for Beneteau CompanyAssets 2014 2013Cash $37,000 $31,000Acct Receivable(net) 80,000 60,000Prepaid Insurance 22,000 17,000Land 18,000 40,000Equipment 70,000 60,000Accum Depreciation (20,000) (13,000)Total Assets $207,000 $195,000Liabilities & Stockholders' EquityAcct Payable $12,000 $6,000Bonds Payable 27,000 19,000Common Stock 140,000 115,000Retained Earnings 28,000 55,000Total Liabilities & SE $207,000 $195,000Additional Info:1. Net loss for 2014 is $12,000. Net sales for 2014 are $250,0002. Cash dividends of $15,000 were declared and paid 20143. Land was sold for cash at a loss of $2,000 This was the only land transaction during the yr.4. Equip. with a cost of $15,000 & accumulated dep. of $10,000 was sold for $5,000 cash.5. $12,000 of bonds were retired during the yr. at carrying(book) value6. Equipment was acquired for common stock. Fair value of the stock at time of exchange was $25,000.(a) Prepare statement of cash flows for the yr ended Dec 31,2014, using the indirect method.(b) Compute current cash debt coverage and cash debt coverage.

 

Paper#42822 | Written in 18-Jul-2015

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