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TRAHAN COMPANY Comparative Balance Sheets December 31 Assets 2012 2011 Cash $38,000 $20,000 Accounts receivable 33,000 14,000 Merchandise inventory

TRAHAN COMPANY
Comparative Balance Sheets

December 31
Assets 2012 2011
Cash $38,000 $20,000
Accounts receivable 33,000 14,000
Merchandise inventory 27,000 20,000
Property, plant, and equipment 60,000 78,000
Accumulated depreciation

(32,000)


(24,000)
Total

$126,000


$108,000

Liabilities and Stockholders' Equity
Accounts payable $24,000 $15,000
Income taxes payable 7,000 8,000
Bonds payable 27,000 33,000
Common stock 18,000 14,000
Retained earnings

50,000


38,000
Total

$126,000


$108,000

TRAHAN COMPANY
Income Statement

For the Year Ended December 31, 2012
Sales $242,000
Cost of goods sold

175,000
Gross profit 67,000
Selling expenses $18,000
Administrative expenses

6,000


24,000
Income from operations 43,000
Interest expense

3,000
Income before income taxes 40,000
Income tax expense

8,000
Net income

$32,000

Additional data:
1. Dividends declared and paid were $20,000.
2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.
3. All depreciation expense is in the selling expense category.
4. All sales and purchases are on account.-------------------

TRAHAN COMPANY
Statement of Cash Flows

For the Year Ended December 31, 2012
Cash flows from operating activities
$____
Adjustments to reconcile net income to net
cash provided by operating activities
$ ____
____
____
____
____



Net cash _____(used/provide)by operating activities
____
Cash flows from investing activities
____

Cash flows from financing activities
___
___
___


Net cash by financing activities ____

Net in cash ____
Cash at beginning of period ____

Cash at end of period ____

$

(b) Compute these cash-basis measures: (Round all ratios to 2 decimal places, e.g. 2.25. For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)


Current cash debt coverage ratio ______ times
Cash debt coverage ratio ____ times
Free cash flow $____

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