The Comparative Balance Sheets for Russell Company Appear Below

question 107

Essay

The comparative balance sheets for Russell Company appear below: Additional information:
1) Net income for the year ending December 31, 2014, was $30,000.
2) Cash dividends of $12,000 were declared and paid during the year.
3) Stock investments that had a book value of $18,000 were sold for $13,000.
4) Sales for 2014 are $130,000.
Instructions
1) Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
2) Compute the following cash based ratios:
A) Current cash debt coverage
B) Cash debt coverage

• A) Current cash debt coverage
• B) Cash debt coverage

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Definitions:

Flooding

A behavioral therapy technique intended to treat anxiety by exposing patients to their fear-inducing stimuli in a controlled environment.

Fear-evoking Stimuli

Environmental or internal triggers that provoke a fear response, activating the body’s fight or flight reaction.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through systematic exposure and other techniques.

Observational Learning

Acquiring knowledge by watching others' actions and the results of those actions.