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The Following Is a Comparative Balance Sheet of Conumdrum Corporation

question 35

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The following is a comparative balance sheet of Conumdrum Corporation for December 31,2014 and 2013:
The following is a comparative balance sheet of Conumdrum Corporation for December 31,2014 and 2013:     Additional information: (a)Net income for 2014,$545,600. (b)Depreciation reported on income statement,$140,000. (c)Fully depreciated equipment,no salvage value,was scrapped.Equipment was purchased for $560,000. (d)Bonds of $400,000 were retired at their face value. (e)10,000 shares of common stock were issued for cash at $28 per share. (f)Cash dividends declared and paid,$240,000. (g)Available-for-sale securities with a book value of $200,000 were sold for $300,000. Prepare a statement of cash flows for Conumdrum Corporation for 2014,using the indirect method.Compute the cash flow to net income and cash flow adequacy ratios.
Additional information:
(a)Net income for 2014,$545,600.
(b)Depreciation reported on income statement,$140,000.
(c)Fully depreciated equipment,no salvage value,was scrapped.Equipment was purchased for $560,000.
(d)Bonds of $400,000 were retired at their face value.
(e)10,000 shares of common stock were issued for cash at $28 per share.
(f)Cash dividends declared and paid,$240,000.
(g)Available-for-sale securities with a book value of $200,000 were sold for $300,000.
Prepare a statement of cash flows for Conumdrum Corporation for 2014,using the indirect method.Compute the cash flow to net income and cash flow adequacy ratios.

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