中级财务会计英计算题.docVIP

中级财务会计英计算题 第五章各种报表数据填写 Ex. 5-116—Statement of cash flows ratios. Financial statements for Hilton Company are presented below: Hilton Company Balance Sheet December 31, 2010 Assets Liabilities Stockholders’ Equity Cash $ 40,000 Accounts payable $ 20,000 Accounts receivable 35,000 Bonds payable 50,000 Buildings and equipment 150,000 Accumulated depreciation— buildings and equipment (50,000) Common stock 65,000 Patents 20,000 Retained earnings 60,000 $195,000 $195,000 Hilton Company Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income $50,000 Adjustments to reconcile net income to net cash provided by operating activities: Increase in accounts receivable $(16,000) Increase in accounts payable 8,000 Depreciation—buildings and equipment 15,000 Gain on sale of equipment (6,000) Amortization of patents 2,000 3,000 Net cash provided by operating activities 53,000 Cash flows from investing activities Sale of equipment 12,000 Purchase of land (25,000) Purchase of buildings and equipment (48,000) Net cash used by investing activities (61,000) Cash flows from financing activities Payment of cash dividend (15,000) Sale of bonds 40,000 Net cash provided by financing activities 25,000 Net increase in cash 17,000 Cash, January 1, 2010 23,000 Cash, December 31, 2010 $40,000 At the beginning of 2010, Accounts Payable amounted to $12,000 and Bonds Payable was $10,000. Instructions Calculate the following for Hilton Company: a. Current cash debt coverage ratio b. Cash debt coverage ratio c. Free cash flow Solution 5-116 Net cash provided by operating activities a. Current cash debt coverage ratio = —————————————————— Average current liabilities $53,000 $53,000 = ——————————— = ———— = 3.3 : 1 ($12,000 + $20,000) ÷ 2 $16,000 Net cash provided by operating activities b. Cash debt coverage ratio = —————————————————— Average total liabilitie